Thanks, @satyajitpatra2005 for putting together the numbers. This is exactly what I was referring to.
As long as the LTCG tax rate is non zero, it never makes sense to sell every year as the money invested after selling will be less than what could have actually compounded in the market.
As far as Govt. increasing the LTCG is concerned, they usually introduce a grandfather clause. For e.g. when the LTCG tax was introduced in 2018 on 31st January, all the gains upto 31st January were exempt and the cost of acquisition was taken from that day onwards. Hopefully, this will be followed in future everytime the rate will be increased.