India to eliminate capital gains tax on foreign investors in government bonds

Reuters reports that India plans to drop capital gains tax for foreign investors. The tax removal applies to gains on government bond holdings. The policy is intended to encourage foreign capital into sovereign debt. Government officials said the change could improve market liquidity. The announcement follows ongoing efforts to attract overseas funding. No timeline for implementation has been provided yet. Market observers expect the move to raise demand for Indian bonds. The decision will be reviewed by the finance ministry before finalisation.