In a bid to attract foreign capital, the Indian government has announced the removal of taxes on government securities (G-Secs) for foreign institutional investors (FIIs). This policy change comes as the Indian rupee has depreciated approximately 7% so far in 2026, including a 6% decline since the Iran conflict began on February 28. By eliminating taxes on G-Secs for FIIs, the government aims to enhance the attractiveness of Indian debt instruments and stimulate foreign inflows, which could help stabilize the currency and financial markets. This measure reflects the government's proactive approach to managing external economic pressures and supporting the domestic economy.