Govt. exempts capital gains tax on FPI investment in G-Secs
The Indian government has exempted foreign institutional investors from long-term capital gains tax on government securities starting April 2026. Additionally, the government expanded the 'fully accessible route' for foreign investment to include longer-term bonds and Sovereign Green Bonds.
Why it matters
This policy shift aims to attract global capital and improve the tax efficiency of Indian debt markets, potentially stabilizing the rupee.
Government of India (GoI) passed an ordinance waiving the 12.5% long term capital gains tax (LTCG) charged on foreign institutional investment in government bonds , according to a statement released 5 June.
The article reports on government policy changes using neutral, factual language without editorializing.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in