Analysts remain divided over the effectiveness of measures taken by the Reserve Bank of India (RBI) and the Centre to attract foreign investors, with industry body ASSOCHAM welcoming the policy push while brokerage Bernstein cautioning that tax concessions alone may not revive sustained foreign fund inflows.
\n\nASSOCHAM President Nirmal k Minda, reacting to former RBI Governor Dr. D. Subbarao's observation that the rupee will ultimately find strength when India attracts durable capital flows based on fundamentals, said, The Government and RBI are already moving in the right direction and ASSOCHAM fully aligns with this approach.
\n\nASSOCHAM also welcome the Finance Ministry's investor-friendly steps including the Income-tax Amendment Ordinance, 2026 which has exempted FPI investments in Government Securities from tax on interest and capital gains with effect from April 1, 2026.
\n\nSaurabh Sanyal, Secretary General ASSOCHAM said, "This forward-looking move will attract stable, long-term capital from pension funds, sovereign wealth funds and insurance companies."
\n\nDr. S P Sharma, Chief Economist ASSOCHAM on RBI's proactive package said the recent measures including the special USD window for public sector oil marketing companies, the Foreign Exchange Risk Reserve, tightening of forex derivative norms, OMO operations and the higher CRR requirement have helped the rupee…
Original source: https://www.timesnownews.com/business-economy
