India mulls capital gains tax exemption for foreign bond investors

India is reviewing its tax policy for foreign investors in bonds. Officials are considering an exemption from capital gains tax. The proposal targets investors holding Indian sovereign debt. Removing the tax could make Indian bonds more attractive abroad. The move is aimed at deepening foreign participation in the market. No final decision has been announced by the finance ministry. Analysts say the exemption may boost demand and lower yields. The policy’s fate will be monitored as India seeks more capital inflows.