Modi Government On Capital Gains Tax: India's Big Move To Attract Foreign Investment Amid Iran War: Sources

The Union Cabinet, led by Prime Minister Narendra Modi, approved an ordinance amending the Income Tax Act to eliminate capital gains tax on investments made by foreign portfolio investors (FPIs) in Indian government securities. This move aims to attract more foreign capital inflows and mitigate the adverse effects of the Iran war on the economy. The decision comes after calls for tax cuts to prevent further outflows from the Indian stock markets, which have seen significant withdrawals from FPIs this year. The ordinance will be implemented after Presidential approval.