India offers tax‑free government bonds to attract foreign investors

India has introduced a new fiscal incentive aimed at foreign investors. The measure exempts interest earned on government bonds from tax. Officials say the policy is designed to broaden the investor base. The move follows a broader push to deepen capital market participation. Analysts view the exemption as a way to boost demand for sovereign debt. The government hopes the incentive will improve funding conditions. Critics caution that reduced tax revenue could affect fiscal balance. The policy will take effect after regulatory approval.