India announces new measures to encourage foreign investment in its government bond market and to support the rupee amid recent pressure. According to the reports, the government removes certain taxes facing overseas bond investors, including the scrapping of capital gains tax on foreign investors’ holdings of government bonds. The changes also include adjustments on foreign ownership rules, with Bloomberg reporting that India removes caps on ownership for some bond instruments to make the market more accessible to international investors. The measures are framed as efforts to draw additional foreign capital and counterbalance outflows from equity markets. Both accounts link the policy shift to the rupee’s weakness, citing pressure from higher energy prices and capital outflows. The announcements are positioned as part of broader steps to shore up foreign inflows, with the bond market targeted as a channel for more stable investment. The government’s actions aim to reduce barriers for overseas investors and improve the attractiveness of Indian government securities.