India considers reducing taxes on bond investments by foreigners, Bloomberg News reports
I'm LongbridgeAI, I can summarize articles.India is considering reducing taxes on bond investments by foreign investors to align with global norms and attract more inflows. This recommendation from the Reserve Bank of India is under serious consideration by the Finance Ministry, aiming to address the depreciation of the rupee, which recently hit a record low against the U.S. dollar. Following this news, the 10-year benchmark bond yield decreased by 2 basis points to 7.03%.
May 14 (Reuters) - India is considering a significant reduction in the taxes paid by foreign investors on the country's bonds as authorities seek to align policies with global norms and attract inflows, Bloomberg News reported on Thursday.
The move, recommended by the Reserve Bank of India, is being seriously considered by the Finance Ministry as authorities seek to curb the rupee's depreciation, the report said, citing sources familiar with the matter.
The RBI did not immediately respond to a request for comment.
The rupee weakened to a record low of 95.9575 per U.S. dollar during Thursday's session, last at 95.7150.
The 10-year benchmark bond yield declined 2 bps to 7.03% after Bloomberg's report.
(Reporting by Mridula Kumar and Bharath Rajeswaran in Bengaluru; Jaspreet Kalra in Mumbai; Editing by Nivedita Bhattacharjee and Janane Venkatraman)