Representatives from capital markets have advocated for reductions in transaction taxes and strategies to enhance the financial sector in the upcoming Budget during discussions held on Tuesday with Finance Minister Nirmala Sitharaman. They proposed ways to improve the efficiency of capital markets and increase access to them.
During the pre-Budget meeting, sector representatives called for a decreased Securities Transaction Tax (STT) on cash market trades compared to derivatives. This consultation marked the fourth of its kind, involving participants from various organizations such as BSE, the Multi Commodity Exchange, the Association of Mutual Funds in India, the Association of Registered Investment Advisers, and the Commodity Participants Association of India.
In the fiscal year 2025, capital markets facilitated resource mobilization totaling ₹14.6 lakh crore, representing a 33 percent increase from the previous year. The range of financial instruments employed—spanning equity, debt, real estate investment trusts (REITs), and infrastructure investment trusts (InvITs)—reflects the adaptable financing strategies being utilized by corporations and infrastructure entities.
However, the equity and debt segments predominantly contributed to this figure, with a combined contribution of ₹14.2 lakh crore, underscoring their critical roles in capital formation and economic development.
The meeting saw the participation of Union Minister of State for Finance Pankaj Chaudhary, Secretary of the Department of Economic Affairs Anuradha Thakur, Chief Economic Adviser V Anantha Nageswaran, along with other senior officials from the Ministry of Finance.
This meeting is part of a series of pre-Budget consultations conducted annually by the Ministry of Finance prior to finalizing the Budget for 2026-27. Last week, Minister Sitharaman met with economists and representatives from the agriculture and MSME sectors in the preceding rounds of discussions.
Sitharaman is set to present her ninth consecutive Budget, expected on February 1, amid geopolitical uncertainties, including a steep 50 percent US tariff on shipments from India. The upcoming Budget will need to tackle challenges related to demand stimulation, job creation, and the pursuit of sustained economic growth exceeding 8 percent. Government estimates suggest that the Indian economy is projected to grow between 6.3 and 6.8 percent during the current fiscal year.
Published on November 18, 2025.
