Overview
India's government is preparing a set of tax measures aimed at attracting foreign investment and bolstering domestic manufacturing, according to a Bloomberg News report citing sources familiar with the plan.
Legislative Action
The Finance Minister, Nirmala Sitharaman, is expected to introduce the bills in the current parliamentary session, although the proceedings have faced disruption from opposition protests.
Tax Exemptions for Investors
One component of the proposal is to formalise tax exemptions for overseas investors who purchase Indian government bonds and to shield offshore funds from tax liabilities when those funds are managed by India‑based fund managers.
Extended Tax Holidays for Electronics Equipment
The plan also seeks to extend the existing tax holiday for overseas suppliers of equipment to Indian electronics manufacturers from its current expiry in 2031 to 2041. The extended incentive would apply to products such as mobile phones, laptops, tablets and servers.
Additional Sectoral Incentives
Further tax benefits are slated for data‑centre operators and for diamond‑mining activities.
Objective
The measures are presented as part of Prime Minister Narendra Modi's broader effort to draw global manufacturers, support the rupee and enhance economic resilience following recent geopolitical tensions.