Tax Breaks, Bond Push & Foreign Money

As the rupee faces pressure from rising oil prices, the Iran conflict, and massive foreign investor outflows, the Government of India and the RBI have unveiled a powerful strategy to attract global capital. The Union Cabinet has approved a proposal to exempt Foreign Portfolio Investors (FPIs) from capital gains tax on government securities and remove withholding tax on interest income. At the same time, RBI Governor Sanjay Malhotra announced a series of measures to boost foreign inflows, including expanded access to government bonds, incentives for overseas investors, and support for foreign currency deposits. Why is India making these moves now? How serious is the foreign investor selloff? Can these measures stabilize the rupee, strengthen forex reserves, and support economic growth amid global uncertainty? Watch this detailed explainer to understand the government’s hidden tax reform, RBI’s capital inflow strategy, and what it means for India’s economy, markets, and investors.