Higher Taxes Will Drive Capital Away, Warns CEA Nageswaran

Chief Economic Advisor (CEA) V. Anantha Nageswaran warned that higher taxes on businesses in India could lead to capital flight. Nageswaran emphasized that excessive taxation could discourage foreign investments and harm economic growth. In his view, the government should maintain a balance between revenue generation and fostering a business-friendly environment to attract investments. He also cautioned against increasing corporate taxes, as this might lead to companies moving operations abroad, thereby affecting job creation and overall economic stability. The comments reflect concerns over the nation’s economic strategy amid global uncertainties and rising domestic taxation.