India Weighs Tax Cuts for Foreign Bond Investors Following RBI Proposal to Stabilize Record-Low Rupee
India is considering a significant tax reduction for foreign bond investors to align with global norms and attract capital. Recommended by the RBI, the move aims to support the Rupee, which hit a record low of 95.95, while bond yields have already eased in response to the news.
- Republic Business
- 1 min read
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India is considering a significant reduction in the taxes paid by foreign investors on the country's bonds as authorities seek to align policies with global norms and attract inflows, Bloomberg News reported on Thursday.
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.
The rupee weakened to a record low of 95.9575 per U.S. dollar during Thursday's session, last at 95.7150.
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The 10-year benchmark bond yield declined 2 bps to 7.03% after Bloomberg's report.
(Reporting by Mridula Kumar and Bharath Rajeswaran in Bengaluru; Jaspreet Kalra in Mumbai; Editing by Nivedita Bhattacharjee and Janane Venkatraman)