India to drop capital gains tax for foreign investors in government bonds, source says
India plans to eliminate capital gains tax on foreign portfolio investments in government securities to attract more capital and stabilize the rupee. This policy shift follows a trend of easing investment restrictions to encourage foreign debt inflows.
Why it matters
This move is a strategic effort to bolster India's financial markets and improve the country's standing in global bond indices.
India plans to scrap capital gains tax on foreign portfolio investments in government securities, which could help boost such inflows, a source familiar with the matter said on Thursday (June 4, 2026).
The article provides a factual account of economic policy changes and includes expert commentary on the potential impact.
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