IndiaPosted at: Oct 5 2026 7:22PM


Congress targets Modi govt over Rs 4.03 lakh crore capital flight, rupee slide

New Delhi, Oct 5 (UNI) The Congress on Monday stepped up its attack on the Narendra Modi government over the large-scale withdrawal of foreign capital from Indian markets, blaming what it described as “wrong economic policies” and “crony capitalism” for the country’s economic difficulties.
Senior Congress leader and party spokesperson Shaktisinh Gohil said foreign institutional investors (FIIs) had pulled out Rs 4.03 lakh crore from Indian markets between January and September this year, describing the sustained capital outflow as a “major concern” and accusing the BJP-led government of “wrecking” the economy.
Addressing a press conference, Gohil said foreign investors had sold around Rs 29,000 crore worth of equities in just three trading sessions on September 29, 30 and October 1. He said foreign portfolio ownership in NSE-listed companies had fallen to around 15.8 per cent, its lowest level in 17 years, and attributed the decline to the government’s “failed” economic policies and its alleged preferential focus on a handful of industrialists.
Gohil also raised concerns over the losses being suffered by retail investors, noting that more than 13 crore people now invest in the stock market. Referring to statements by Prime Minister Narendra Modi and union Home Minister Amit Shah in 2024 encouraging people to invest in equities, he said investors who entered the market around September 2024, when the Sensex was around 85,836, had seen the value of their investments decline as the index fell to around 72,500 by September 29, 2026.
He sought accountability from the Prime Minister for the losses suffered by investors and questioned the government’s economic policies amid the sustained market volatility.
The Congress spokesperson also attacked the capital gains tax regime, arguing that investors were required to pay both Securities Transaction Tax and capital gains tax. He pointed out that short-term capital gains were taxed at 20 per cent and long-term capital gains at 12.5 per cent, describing the tax structure as an additional burden on the middle class.
Gohil contrasted the present system with the policies of the Congress-led UPA government, recalling that long-term capital gains tax on securities transactions had been abolished in 2004. He also cited the performance of the stock market during the UPA’s 10-year tenure, claiming that the Sensex rose by 398 per cent despite the global recession and arguing that the then government had succeeded in insulating the Indian economy from its worst effects.
He invoked the economic reforms of the 1990s as another point of comparison, recalling that then Finance Minister Dr Manmohan Singh had opened Indian capital markets to foreign institutional investment. Gohil said those reforms had helped deepen India’s integration with global financial markets and strengthen investment flows.
The Congress leader also questioned the government over the depreciation of the rupee, saying the currency was nearing the Rs 100-to-dollar level. Referring to Prime Minister Modi’s criticism of the rupee’s weakness during 2012-13, Gohil asked the government to explain the currency’s present position.
He further compared the performance of Indian equities with markets in the United States, Poland, Greece, Taiwan and South Korea and questioned why Indian stocks had underperformed several global markets despite the government’s repeated claims about the strength of the Indian economy.
Gohil demanded answers from the government on the sustained FII outflows, the depreciation of the rupee, fuel prices and the losses incurred by retail investors.
The Congress leader also turned his attack towards Chief Election Commissioner Gyanesh Kumar over the Election Commission’s ongoing Special Intensive Revision (SIR) of electoral rolls, accusing him of acting in a partisan manner and helping the BJP.
“When you are not confident about the game, you appoint your own umpire,” Gohil said in an apparent reference to the Election Commission’s handling of the electoral-roll revision exercise.
The Congress has been mounting a sustained campaign against the SIR, alleging that large numbers of eligible voters are being excluded from electoral rolls and demanding greater transparency in the revision process. The Election Commission, however, has maintained that the exercise is intended to ensure the accuracy and integrity of electoral rolls and has defended its constitutional and legal basis.
Gohil’s remarks brought together the Congress’s economic and electoral attacks on the Modi government, with the party seeking to turn capital outflows, market losses and rupee depreciation into a wider political challenge while simultaneously questioning the Election Commission’s handling of the electoral-roll revision. UNI SKA AAB
Tags: #Congress targets Modi govt over Rs 4.03 lakh crore capital flight# rupee slide
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