News Summary

• Devang Shah, Head of Fixed Income at Axis Mutual Fund, says India could see inflows to the tune of $60 billion-$80 billion.
• “Issuance of foreign currency sovereign bonds could serve as a supplementary step to finance the fiscal deficit, ease pressure on domestic yields, and support foreign inflows,” he says.
• The measures include scrapping of capital gains and withholding tax on foreign institutional investors’ (FIIs) investment in government debt to boost foreign currency deposits and loans.