Aam Aadmi Party (AAP) Member of Parliament Raghav Chadha has put forward a series of bold proposals aimed at overhauling India's taxation and investment framework. In a significant intervention in Parliament, the MP urged the Finance Minister to implement changes designed to protect and incentivize domestic capital while embracing technological innovation in asset ownership.
Chadha's Trio of Economic Reform Proposals
The core of Chadha's pitch revolves around three distinct but interconnected ideas. First, he strongly advocated for a policy shift to reward and protect domestic investors, arguing that homegrown capital deserves preferential treatment to fuel India's growth story. This move is seen as a strategy to reduce excessive reliance on foreign investment volatility and build a more self-reliant economic base.
Second, the AAP parliamentarian called for the implementation of a full GST pass-through mechanism under a proposed GST 2.0 regime. This technical reform aims to ensure that the full benefit of input tax credits flows seamlessly through the entire supply chain, ultimately reducing the final cost for consumers and eliminating the current cascading effect of taxes that can sometimes get trapped in the system.
Embracing Blockchain: The Tokenisation Bill
The third and most forward-looking proposal involves the introduction of a dedicated Tokenisation Bill. Chadha's vision for this legislation includes the creation of a regulatory sandbox—a safe testing environment for new technologies. This framework would specifically govern blockchain-based fractional ownership of assets.
This innovation could democratize investment by allowing smaller investors to buy fractions of high-value assets like real estate, art, or infrastructure projects through digital tokens. The sandbox approach would allow regulators to monitor risks and craft rules before a full-scale national rollout.
Potential Impact on India's Economic Landscape
If adopted, these proposals could signal a game-changing shift in India's economic policy. Prioritizing domestic investors could redirect substantial Indian capital parked overseas back into the domestic market. The GST 2.0 refinement promises to enhance the efficiency of India's largest indirect tax reform, potentially boosting compliance and formalizing the economy further.
Meanwhile, the Tokenisation Bill positions India at the forefront of financial technology regulation. By providing clarity and a controlled environment for blockchain applications in finance, the government could unlock new avenues for capital formation and asset liquidity, attracting tech-savvy investors and startups globally.
The proposals, presented by Raghav Chadha on December 16, 2025, now await a response from the government. They have sparked discussions on whether the upcoming budget could incorporate elements of this reform agenda to stimulate investment and modernize the country's financial regulatory architecture.
