India may cut foreign investor bond taxes to support rupee
Business
India is thinking about lowering taxes for foreigners who invest in its bonds, a move meant to bring in more global money and help the rupee, which has dropped over 6% against the US dollar this year.
The idea came from the Reserve Bank of India and is now being considered by the Ministry of Finance.
Bond tax in India exceeds peers
Right now, foreign investors pay around 20% tax on bond interest in India, way higher than places like Indonesia or Mexico.
With oil prices up because of the Iran war, India's import bills are rising.
Dropping taxes could make Indian bonds more appealing and give a boost to both investment and the economy.