India exempts foreign investors from tax on government securities, boosting demand

The Indian government announced a new tax policy. It exempts foreign investors from paying tax on government securities. The move is intended to make G‑Secs more attractive to overseas capital. Foreign investors can now purchase G‑Secs without a tax burden. The exemption could increase demand for Indian sovereign debt. Higher demand may help lower borrowing costs for the government. Analysts suggest the policy could improve market liquidity. Watch for reactions from investors and rating agencies.