India’s government eliminated capital gains tax for foreign portfolio investors on income from government securities, completing a major incentive package for bond market entry.
Officials said the move, combined with zero withholding tax on interest, positioned India as one of the most attractive emerging-market destinations for sovereign debt investment.
Foreign inflows have accelerated since index inclusions by JPMorgan, Bloomberg and FTSE Russell. The 1.5 trillion dollar market has seen record participation from global funds.
Finance ministry officials said the tax changes were permanent rather than temporary concessions designed to attract short-term capital.
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Sources:
https://www.business-standard.com/economy