Key facts
- Foreign investors are now exempt from India's 12.5% capital gains tax.
- The government aims to attract increased foreign capital.
- The Reserve Bank of India has launched measures to support foreign capital inflows.
The Indian government has announced an exemption from the 12.5% capital gains tax for foreign investors. This policy shift is designed to bolster foreign capital inflows into the country, particularly in light of prevailing external economic vulnerabilities. Complementing this fiscal measure, the Reserve Bank of India has also initiated a series of actions aimed at supporting and encouraging foreign investment. The move is expected to make India a more attractive destination for international capital, potentially boosting its financial markets and economic stability.