New Delhi, May 27 -- Foreign institutional investor (FII) flows into Indian equities have remained volatile over the last year as global investors continue comparing India's valuations, policy environment and after-tax returns with competing emerging markets.

Amid growing debate around ways to improve India's attractiveness for global capital, several market experts believe rationalising long-term capital gains (LTCG) and short-term capital gains (STCG) taxes could help improve sentiment and make Indian markets more competitive.

However, while many market participants support tax rationalisation, some experts also caution that taxation alone may not be sufficient to revive sustained FII inflows unless broader macroeconomic conditions im...