New Delhi, May 19 -- India is not considering a cut in capital gains tax on foreign portfolio investors, or FPI, in the country at this point in time as a measure to stem capital outflows from the country, a top government source 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 source 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 f...