Vipin Upadhyay Comments on Capital Gains Tax Exemption for Foreign Investors in Government Securities

Vipin Upadhyay, Partner, Tax at King Stubb & Kasiva, was recently featured in Business Today discussing the Government’s decision to exempt foreign investors from capital gains tax on investments in specified Government Securities (G-Secs) through a recently promulgated ordinance.

The measure is being widely viewed as a significant step towards enhancing India’s attractiveness as a global investment destination and deepening participation in the country’s sovereign debt market.

Commenting on the development, Vipin observed that the decision addresses a longstanding concern among international investors. He noted that exempting Foreign Portfolio Investor (FPI) holdings in government securities from capital gains tax directly responds to one of the most persistent issues raised by global investors, particularly given that India has historically remained among the few major markets that taxed non-residents on sovereign debt investments.

The reform is expected to strengthen India’s position in global bond markets by reducing tax-related friction for foreign investors and aligning the country’s regulatory framework more closely with international practices. Market participants have welcomed the move as a positive signal for long-term foreign capital inflows, particularly following India’s inclusion in major global bond indices. Visit article: https://www.businesstoday.in/latest/economy/story/centre-exempts-foreign-investors-from-taxes-on-g-sec-investments-via-ordinance-what-it-means-for-indias-bond-market-535054-2026-06-05

Last Updated on 9 June, 2026