Finance Minister Nirmala Sitharaman said that the recent capital gains tax relief for government securities (G-Secs) is not the final step and India needs stronger foreign capital inflows to support its growing economy.

How this affects you

Increased foreign investment in Indian bonds is expected to improve liquidity, lower borrowing costs for the government, and strengthen India’s financial markets. Policymakers are also monitoring global uncertainties like crude supply risks and domestic factors such as monsoon progress, which could affect inflation.