Mumbai, Nov 2 (IANS) Finance Minister Nirmala Sitharaman on Monday expressed confidence that the issues within the Tata Group, including differences over the re-appointment of its chairman and the proposed listing of Tata Sons, would be resolved amicably through internal discussions.
Speaking at the Financial Express Leadership Awards here, FM Sitharaman described the matter as a sensitive issue involving significant commercial and business considerations, and said it should be settled by the concerned parties rather than through public disagreements.
Highlighting the Tata Group’s importance to the Indian economy, she pointed to the conglomerate’s global brand value, the contribution of the Parsi community in building the group, and the wide range of sectors in which Tata companies operate.
“I know the brand value of Tata, the contribution of the Parsee community to make Tata a huge global brand. I also know the expanse of activities in which Tatas are invested. So this is a very critical component to the Indian economy and therefore it has to be amicably settled between themselves,” FM Sitharaman said.
The Finance Minister urged all stakeholders to engage in dialogue and restore normalcy at the earliest, adding that prolonged public disputes were not desirable for an institution of such stature.
Addressing another key issue concerning investors, FM Sitharaman said the government would listen to concerns raised by foreign portfolio investors (FPIs) regarding India’s capital gains tax regime before deciding on any course of action.
Speaking amid growing demands for a reduction in long-term capital gains (LTCG) tax, the minister acknowledged that changing market conditions and foreign investment outflows had intensified calls for a reassessment of the tax structure.
“These are very delicate matters, and a lot of business and commercial acumen will have to come into play,” the finance minister said.
FM Sitharaman, however, noted that the existing taxation framework was the same during 2023, when India witnessed record foreign investment inflows.
“The taxation structure was what it is today even in 2023, when inflows were at record highs. Today, the circumstances have changed. FII outflows have happened, and voices of concern are louder. I will consider all this,” FM Sitharaman mentioned.
The Finance Minister indicated that the government would weigh multiple factors before considering any changes to the current tax regime, while taking into account concerns voiced by global investors.
–IANS
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