Congress blames Modi government for stock market slump and foreign fund outflows

In a parliamentary session, Congress MP Shaktisinh Gohil targeted the Narendra Modi-led government, saying the Indian stock market’s recent decline and ongoing foreign institutional investor outflows are harming the middle class. He cited provisional data showing foreign investors sold another ₹10,148 crore on October 1, bringing year-to-date sales to about $27.8 billion. Gohil also denounced the shift in capital-gains taxation, pointing out that short-term gains are taxed at 20 percent and long-term gains, previously zero under the UPA, are now 12.5 percent.

He compared one outlet Sensex level, near 72,500, with its peak of 85,836, arguing that investors who trusted Prime Minister Modi’s encouragement have suffered losses. The congressman further claimed that during Manmohan Singh’s tenure the Sensex rose 398 percent, contrasting it with the present stagnation. He concluded that the BJP government bears responsibility for the capital outflows, a weak rupee, and the financial strain on ordinary investors.