www.misfits.bet
www.globalgovernanceinitiative.org
**
Why Stock market in India is crashing :
India reintroduced LTCG tax in 2018 at 10% on gains above ₹1 lakh, which was earlier tax-free.
Any gains from stocks sold within a year attract a high 15% STCG tax, making short-term trading less lucrative.
In a volatile market, traders and hedge funds prefer markets with lower taxation.
Dividend Distribution Tax (DDT) was removed in 2020 but replaced with tax on dividends in the hands of investors at marginal tax rates (up to 42%).
In contrast, most global markets (like the US, Singapore, UAE) have either lower or zero LTCG tax, making India less attractive for investors.
Long-term investors, including mutual funds and retail investors, are discouraged from staying invested.
Retail investors, especially the middle class, are overburdened with GST on brokerage fees, STT (Securities Transaction Tax), and capital gains tax.
Higher capital gains tax is pushing Indian startups and investors to list abroad (e.g., Zomato, Paytm, and others considering Singapore and the US).
In 2014, diesel was ₹55 per liter. Today? ₹90+ per liter. Petrol? ₹110+ per liter in some cities. And guess what? The government keeps collecting record fuel taxes.
Due to high taxation, the post-tax returns on investments are lower, discouraging retail and institutional investors.
They taxed your milk, tea, and medicines—but billionaires get rebates.
They taxed your restaurants at 18%—but political parties get zero GST on donations.
They taxed your education materials—but luxury SUVs get special exemptions.
“India’s middle class is the backbone of this economy. When you suffer, the economy suffers. When small businesses shut down, job losses rise. And when businesses stop growing, the stock market crashes.”
“And then? The same politicians will blame foreign factors—never their own policies.
Fuel tax? You pay.
Swachh Bharat Cess? You pay.
Road tax? You pay.
28% GST on food delivery? You pay.
This is your money. These are your businesses. This is your future.
Stop blindly defending parties—start demanding better policies.
Because if you don’t? They’ll keep looting you.”
www.misfits.bet
www.globalgovernanceinitiative.org
**
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### **1. Understanding Fraud Nationalism and Its Economic Impact**
– **Definition**: Fraud nationalism refers to a form of pseudo-nationalism where leaders or groups prioritize populist rhetoric over substantive governance, often at the expense of economic stability, social harmony, and investor confidence.
– **Manifestation in India**:
– Policies favoring crony capitalism and oligarchs.
– Erosion of democratic institutions, discouraging foreign investment.
– Polarizing societal narratives undermining social cohesion.
– Heavy-handed regulation and unpredictability in policy decisions, e.g., retrospective taxation.
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### **2. Why Investors Are Leaving India**
– **Economic Policy Uncertainty**:
– Frequent policy flip-flops, e.g., demonetization, GST implementation issues.
– Protectionist measures reducing the appeal of India as a global trade hub.
– **Comparative Advantages of Other Countries**:
– **Vietnam**: Pro-business environment, low manufacturing costs, consistent reforms, and integration into global supply chains (e.g., electronics and textiles).
– **China**: Still attractive due to its robust infrastructure, advanced manufacturing capabilities, and large consumer base despite geopolitical tensions.
– **USA**: A stable and transparent market with high returns on innovation-driven sectors like technology and healthcare.
– **Overregulation and Corruption**:
– Bureaucratic hurdles and inconsistent enforcement of regulations dissuade investors.
– Perceptions of favoritism towards certain business groups diminish trust in the free market.
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### **3. Stock Market Implications for 2025**
– **Positive Scenarios**:
– Structural reforms in governance and economic policy could stabilize the market.
– Sectors like technology, renewable energy, and defense may see growth driven by global trends.
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