Government Exempts Foreign Portfolio Investors from Tax on G‑Sec Gains to Attract Capital Inflows

The government announced an exemption for foreign portfolio investors on gains from government securities. The tax relief applies specifically to profits earned on G‑Sec investments. Officials said the measure is intended to draw additional capital inflows. The policy aims to make Indian debt markets more appealing to overseas investors. The exemption removes a tax barrier that previously affected foreign holdings. Market analysts expect the move could boost demand for sovereign bonds. The change is part of broader efforts to strengthen financial inflows. Investors will monitor the impact on yields and market liquidity.