India scraps tax on overseas bond investors in bid to attract foreign capital and shore up the rupee

India announced measures to boost capital inflows, including scrapping capital gains tax for foreign investors in government bonds. The move should improve demand for Indian sovereign debt and support foreign portfolio inflows, while also lowering friction for cross-border investment. The policy is a modest positive for bond markets and broader emerging market sentiment.

Analysis

India announced measures to boost capital inflows, including scrapping capital gains tax for foreign investors in government bonds. The move should improve demand for Indian sovereign debt and support foreign portfolio inflows, while also lowering friction for cross-border investment. The policy is a modest positive for bond markets and broader emerging market sentiment.