Modi gives lift-off to Indian capital markets

The Modi government has cut withholding taxes on offshore bonds and raised limits on foreign investment in insurance companies.
Narendra Modi
Narendra Modi

The new Narendra Modi-led government last week introduced a slew of proposals aimed at boosting capital markets activity and attracting foreign investment.

To create a more investor friendly environment, the government has curbed the use of retrospective taxation, a move aimed at allaying concerns among investors raised by Vodafone's long-standing tax dispute with the government.

Mobile operator Vodafone's wrangling with the government started when it acquired Hutchison Telecom's stake in Hutchison Essar in 2007. An Indian court ruled in early 2012 that the deal was not taxable by the Indian government as it was transacted by companies incorporated outside of India.

However, later...

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