New Delhi, Oct. 26 -- The government is considering lowering the long-term capital gains (LTCG) tax from the current 12.5% and allowing foreign investors to calculate capital gains in dollar terms instead of rupees as part of efforts to improve stock market sentiment, The Indian Express reported.

The proposals are reportedly under discussion ahead of the Union Budget 2027-28. The potential changes would seek to address concerns among domestic and foreign investors amid a prolonged period of subdued stock market performance.

Officials cited two key concerns behind the discussions: weak or negative stock market returns over the past two years and sluggish wage growth, which have weighed on investor sentiment, particularly among the middle...