Prioritise GDP, not tax revenues

The present tax policy is focused on increasing tax revenues, whereas it should try to obtain the same number of rupees of taxation, while enabling a higher GDP

It is widely understood that the Indian taxation of corporations is unusual by world standards. This is also the case with the Indian taxation of foreign investors. The taxation of non-resident investors drives up the cost of capital for Indian firms, and adversely impacts physical investment in India. It hampers the growth of financial services and allied industries, and hampers the liquidity and market efficiency of financial markets. 

Let's start in a world where India has residence-based taxation: That is, non-residents are not taxed. Suppose we try to sell foreigners Indian government bonds, and suppose the supply and demand are equalised