India's Stock-Market Tax Cuts Could Unlock Liquidity Across Stocks, Forex, and Crypto

India's sluggish stock market performance has led to growing investor frustration, particularly in the face of pressure on the rupee and significant tax burdens. On September 24, 2026, crypto and finance educator Pushpendra Singh proposed three tax reforms for public debate: abolishing Securities Transaction Tax (STT), removing Long-Term Capital Gains Tax (LTCG), and reducing Short-Term Capital Gains Tax (STCG).

Abolishing STT would directly reduce the cost of trading Indian stocks, as the current 0.1% tax on equity delivery makes the total round-trip cost 0.2%. On a ₹1 lakh buy-and-sell transaction, STT alone amounts to ₹200. Reducing or removing LTCG and STCG rates would further increase investors' post-tax returns.

Lower trading costs could boost post-tax returns, promoting higher volumes and deeper market liquidity. This increased liquidity may spill over into India's crypto market, as reduced trading expenses can lead to a greater sense of risk appetite among investors. However, the connection between stock-market liquidity and crypto remains indirect.