Government Waives Capital Gains Tax for FIIs on Government‑Secured Bonds

The Indian government announced a tax exemption for foreign institutional investors. FIIs will not pay capital gains tax on gains from government‑secured bonds. The policy is intended to attract additional foreign capital. It specifically targets investment in sovereign debt instruments. Officials expect the move to lower borrowing costs for the treasury. Foreign investors stand to benefit from higher net returns. Market analysts anticipate increased demand for government securities. Bond yields will be monitored for signs of the policy's impact.