India Opens Bond Market Wider: Foreign Investors Get Full Tax Break on G-Secs
What Happened
The Lok Sabha passed the Taxation and Other Laws (Amendment) Bill, 2026, exempting foreign institutional investors from paying tax on interest income and capital gains earned from investments in Indian government securities. The exemption applies to income arising on or after 1 April 2026.
Key Takeaways
The move is designed to attract long-term global investors such as pension, insurance, and sovereign wealth funds, deepen India's bond market, and improve the country's competitiveness as an investment destination.