Rama Mohan Rao Amara, Managing Director of State Bank of India, has expressed support for the government's recent decision to exempt foreign portfolio investors (FPIs) from capital gains tax on Indian government securities (G-secs). This policy change is intended to encourage foreign investment in Indian debt markets, especially as emerging markets face global economic challenges. While this exemption is seen as a positive step to attract foreign capital, Amara cautions that bond yields in India may not decrease in the near term. The move reflects efforts to enhance the attractiveness of Indian government securities to international investors without immediate impact on bond yield trends.