Govt announces measures to attract foreign capital

The government on Friday announced a series of measures to attract foreign investment to shore up India’s capital account, including changes in rules regarding investments by foreign individuals in Indian stocks, offering more investment options to foreign portfolio investors (FPIs) , and making income on government bonds tax free with retrospective effect from April 1.

The move is in line with the government’s commitment to strengthen India’s position as a leading global investment destination and to deepen the capital market, the Union finance ministry said in a statement.

Building on the recent initiatives to enhance ease of doing business in capital markets, further reforms have been announced to make foreign investment in equities and G-Secs more accessible, efficient, and globally competitive, it added.