India Unwilling to Bend for Index Inclusion to Bring in Billions
- Investors seek easier compliance, operational requirements
- Optimism over inclusion fuels rally in Indian sovereign bonds
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India has ruled out any changes to tax policies that will make it easier for the nation’s bonds to be included in global indexes, according to people familiar with the matter.
The government doesn’t plan to waive capital gains taxes, and it’s concerned that foreign inflows will increase the volatility of local markets, said the people, who didn’t want to be identified discussing policy matters. Those taxes have been a stumbling block in previous negotiations.