“..if tax rates are very high, obviously people look for other countries, which have lower interest rates, and also exemptions from income tax”, says Bimal Jalan, former RBI governor.

India has raised taxes on rich to 42.7% (if you are earning more than 1 crore annually).

India is among the top 10 countries with the highest corporate tax rate (25%).

“The incentive to borrow or invest domestically is certainly impacted by higher taxes. So investors may be sending money overseas, but hopefully it does not lead to round tripping.” [Bimal Jalan]