As the finance ministry's proposal to hike the income tax surcharge on foreign portfolio investments (FPIs) raised concerns among investors, chief economic adviser (CEA) Krishnamurthy Subramanian said that they will be deliberating on the surcharge issue soon. He also urged market participants to factor in finance ministers’ (FM) long term vision for a $5 trillion economy.

“Given that the FM has already clarified on this, it would not be appropriate for me to say more on that part. We will be deliberating either which way. I would leave it at the FM’s statement on that,” he told reporters.

“Stock markets often times take some time to see through some of the bigger messages, ideas and that is very important to remember,” he added.

“If one noticed in the FM’s speech, part A was almost entirely about the vision for the USD 5 trillion economy. I would urge the market participants to look through the long-term impacts and factor that in," said Subramanian.

"Finally, stock prices are basically the discounted value of all the future. So what is in the future should definitely get factored in enough is something that I would urge market participants especially the vision for the $5 trillion economy,” he added.

After the proposal was announced in finance minister Nirmala Sitharaman's Budget speech on July 5, Indian benchmark indices plunged over 3 percent in the last two sessions, with the 30-share Sensex losing over 1,000 points.