UPSC Key-6th June: FII bond tax exemption, Nilgiri Tahr, BS-VI

The Indian government scrapped capital gains and withholding tax on investment by Foreign Institutional Investors (FIIs) in government bonds to attract foreign funds. This move is expected to bring billions of dollars into the country, helping bridge a looming balance of payments deficit. The decision comes as India faces pressure to attract foreign investments and stabilize its rupee. The RBI eased norms for state-owned enterprises and banks to borrow overseas, aiming to encourage capital inflows.