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The move, recommended by the Reserve Bank of India, is being seriously considered by the Finance Ministry as authorities seek to curb the rupee’s depreciation, the report said, citing sources familiar with the matter.
The RBI did not immediately respond to a request for comment.
India is reportedly considering a significant reduction in taxes for foreign investors on its bonds. This move, recommended by the Reserve Bank of India and seriously considered by the Finance Ministry, aims to align with global norms, attract inflows, and curb the rupee’s depreciation. The rupee recently hit a record low against the U.S. dollar.
The rupee weakened to a record low of 95.9575 per U.S. dollar during Thursday’s session, last at 95.7150.
The 10-year benchmark bond yield declined 2 bps to 7.03% after Bloomberg’s report.
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https://economictimes.indiatimes.com/markets/bonds/considers-reducing-taxes-on-bond-investments-by-foreigners-reports/articleshow/131087294.cms
