Government Reforms to Deepen G-Sec Market & Attract FPI

Government Reforms to Deepen G-Sec Market & Attract FPI

Objective: Boost FPI participation, diversify investor base, and strengthen India’s debt market.
Tax Benefits:
Interest income & capital gains from G-Secs now tax-free for FPIs/FIIs.


Previous Regime:
Interest & gains taxed at 30% & 12.5% respectively.


New Regime:
Tax exemption for interest & capital gains on G-Secs.