Foreign investors pour ₹8,795cr into Indian bonds, holdings ₹3.32Lcr
Foreign investors just poured ₹8,795 crore into Indian government bonds after a new tax break made these investments more attractive.
Thanks to this move, total foreign holdings in these bonds stood at ₹3.32 lakh crore on June 9, up from ₹3.23 lakh crore on June 3.
Ordinance exempts FPIs, RBI eases limits
The government's recent ordinance means FPIs won't have to pay taxes on interest or capital gains from these bonds (retroactive from April 1, 2025).
The RBI also opened up more long-term bonds and removed some investment limits, hoping to draw in more global money and give the rupee a boost.
As Arete Capital's Mataprasad Pandey put it, these changes could help India get noticed by big global bond indices like Bloomberg's, potentially bringing even more international investment down the line.