new delhi, May 19 -- India is not considering a cut in capital gains tax on foreign portfolio investors (FPIs) in the country at this point in time as a measure to stem capital outflows from the country, a top government official aware of the matter said. The view in the government is that FPIs are neither reducing India allocations based on their assessment of the country's attractiveness nor due to a global shift in capital flows to themes such as artificial intelligence, semiconductors and data centres in the US, Taiwan and South Korea.Rather, the sustained FPI selling, the person said, seems to be taking place in response to the "America First" call given by the White House. "Investment inflows were substantial when India's sovereign rating was, in fact, lower. The pull-out since then is a strategic call by foreign investors; it's not a view on India's attractiveness," the senior government functionary said.The official acknowledged that there are demands to cut taxes on returns on foreign investments and that it is being discussed in investor circles as a potential strategy to ease pressure on the rupee. FPI profits are exempt from capital gains tax in most other markets; India levies a long term capital gains tax of 10%."If the tax restriction is removed for foreign portfolio investments, then we could see sustainable increase in allocations (to India)," Satish Ramanathan, chief investment officer-equity at JM Financial Asset Management Co. had told Mint in an April interview....