BS EDIT: Tango and Cash

By Business StandardPublished On Jun 8, 2026

A Joint Move

The RBI and government acted together to address capital outflows and concerns over India's external balances

Tax Relief for FPIs

Capital gains and interest taxes on sovereign bond investments by foreign investors have been scrapped

Wider Bond Access

Global central banks can now invest in Indian government bonds, bringing more stable capital flows

RBI's Capital Push

New forex measures and export realisation norms are designed to improve foreign currency inflows

Easier Investment Rules

Expanded access to government bonds and relaxed limits could attract more overseas investors

Markets Respond

The rupee gained strength and bond yields eased after the coordinated policy announcements

Long-Term Signal

The reforms reflect a clear intent to deepen markets and make India a more attractive investment destination