India Mulls Tax Withdrawal on Foreign Portfolio Investment in Government Securities

The Indian authorities are reviewing tax policy for foreign portfolio investors. The focus is on investments made in government securities (Gsec). A proposed withdrawal of taxes could make Gsec more attractive to foreign funds. The move is seen as a step toward deepening capital market participation. Officials suggest the change may boost liquidity in sovereign debt. Critics caution about potential revenue implications for the treasury. The policy debate reflects broader efforts to enhance India's investment climate. Stakeholders await the final decision on the tax withdrawal.