Withholding Tax Removal Could Unlock $25 Billion In Bond Inflows, Says Citi's Aditya Bagree

India Eyes Major Bond Inflows with Tax Changes

India is on the brink of a significant surge in foreign investment, contingent on two pivotal policy adjustments. The proposed elimination of withholding tax on government bonds, along with the country's anticipated inclusion in the Bloomberg Global Aggregate Bond Index, could open the floodgates for up to $25 billion in bond inflows.

This influx would not only bolster India's balance of payments but also alleviate existing fiscal pressures. According to Citi’s Aditya Bagree, these strategic moves are set to enhance the attractiveness of the Indian economy for global investors, positioning it for a robust financial future.