India Weighs Cutting 20% Bond Tax and Lifting Ownership Caps to Draw Foreign Funds
Updated
Updated · Bloomberg · Jun 3
India Weighs Cutting 20% Bond Tax and Lifting Ownership Caps to Draw Foreign Funds
3 articles · Updated · Bloomberg · Jun 3
Summary
India’s cabinet is set to review measures as soon as this week to make the bond market more attractive to overseas investors, according to people familiar with the plan.
A key proposal would sharply cut taxes paid by global funds on Indian bonds, including either scrapping the 20% levy on bond interest or reducing it to a minimal level.
The cabinet is also expected to consider removing ownership limits on some bonds, a step aimed at easing access for foreign buyers alongside the tax changes.
The package would mark a broader push to pull more foreign capital into India’s debt market by lowering both tax costs and investment restrictions.