Now Reading: Centre considers FDI easing, offshore fund tax relief
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Centre considers FDI easing, offshore fund tax relief
The government is considering a proposal to relax foreign direct investment norms for downstream investments, sources said. The move is aimed at boosting overseas fund inflows and creating jobs. Separately, the Taxation…
The Story in Brief
The government is considering a proposal to relax foreign direct investment norms for downstream investments, sources said. The move is aimed at boosting overseas fund inflows and creating jobs. Separately, the Taxation and Other Laws (Amendment) Bill, 2026 proposes to substantially ease eligibility conditions for offshore funds to avail tax exemption on global income, removing thresholds like minimum 25 investors and Rs 100 crore corpus.
Together, these measures seek to attract foreign capital, with the RBI and government already netting $40.81 billion through earlier schemes till July 31. India’s forex reserves rose $6.118 billion to $682.354 billion in the week ended July 24 as inflows started to pour in. The Bill is expected to be introduced in Lok Sabha soon.
The Indian Opinion
The government is rolling out a broad set of incentives to lure foreign capital, but critics may argue these tax breaks and relaxed norms are short-term fixes that favour global funds over domestic enterprises. The real test for ordinary Indians is whether these moves translate into sustained job creation and not just a surge in hot money. Watch the quarterly FDI data and fund management relocation figures after the Bill’s passage.
Sources (2): thehindubusinessline.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
