India recommends ordinance easing foreign investor taxes to steady rupee
The Indian government just recommended an ordinance to make tax rules easier for foreign investors in certain securities.
This is all about trying to stop the rupee from sliding further; it's already dropped 6% against the US dollar this year, partly because foreign portfolio investors (FPIs) have pulled ₹2.6 lakh crore out of Indian stocks since January.
Tax relief part of wider measures
This tax relief is one piece of a larger strategy to tackle economic challenges like the weak rupee and global uncertainty.
The government's also rolling out export packages, business credit lines, and tweaking fuel duties.
Plus, the Reserve Bank of India is expected to announce more steps on Friday after its Wednesday meeting.
Eased taxes to lure foreign investors
Foreign investors have long said high capital gains and securities transaction taxes made investing in India less appealing.
By easing tax rules for foreign investors in some categories of securities, the government hopes to win them back and keep more money flowing into Indian markets.