India achieved the fastest progress among major emerging markets toward global bond index inclusion as foreign portfolio investors benefited from zero tax on government securities income, officials said.
The government eliminated capital gains tax and withholding tax on interest for FPIs investing in Indian government bonds, a move designed to attract record foreign inflows.
Entry into JPMorgan, Bloomberg emerging-market and FTSE Russell indexes has drawn billions of dollars into the 1.5 trillion dollar government securities market.
Policymakers said further reforms targeting Bloomberg’s Global Aggregate Index could unlock additional investment and reduce sovereign borrowing costs.
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Sources:
https://www.business-standard.com/economy