๐๐ป๐ฑ๐ถ๐ฎ ๐ง๐ฎ๐ฟ๐ด๐ฒ๐๐ ๐๐น๐ผ๐ผ๐บ๐ฏ๐ฒ๐ฟ๐ด ๐๐ผ๐ป๐ฑ ๐๐ป๐ฑ๐ฒ๐ ๐ช๐ถ๐๐ต ๐ก๐ฒ๐ ๐-๐ฆ๐ฒ๐ฐ ๐ฅ๐ฒ๐ณ๐ผ๐ฟ๐บ๐
The Indian government announced reforms last Friday to increase foreign investment in government bonds. The move aims to secure inclusion in the Bloomberg Global Aggregate Bond Index.
The reforms include:
- Tax exemptions on interest income
- Tax exemptions on long-term capital gains
- Tax exemptions on short-term capital gains
- More securities under the Fully Accessible Route
- Simpler investment rules
The Reserve Bank of India also announced measures last Friday to draw foreign capital.
Government sources expect these steps to support India's entry into the index. Inclusion would expand the bond market and draw passive fund inflows.
The finance ministry held four meetings with three RBI deputy governors during the past two months. Officials designed the reforms to expand the bond market.
Bloomberg began reviewing India's inclusion in the $3 trillion index in January. The next update is due by mid-2026.
India joined the JP Morgan Government Bond Index-Emerging Markets on June 28, 2024.