India Exempts Foreign Investors From Bond Taxes, Opens $50B Inflow Pathway

RBI and the government unveiled a June 5 package to attract foreign capital into Indian government bonds, aiming to ease rupee pressure from high oil prices and equity outflows. Measures include retroactive tax exemptions for FPIs and BIS, expanded Fully Accessible Route bonds (15‑, 30‑, 40‑year), and removal of General Route limits. Added steps: FX swap facilities, concessional hedging for FCNR deposits, and restored export proceeds timeline. Analysts project $30–50B inflows, with Goldman Sachs revising its 3‑month rupee forecast to 96.