India is preparing to announce measures aimed at increasing foreign investment by cutting taxes and relaxing bond ownership regulations. The cabinet is expected to discuss a significant reduction in taxes imposed on foreign funds investing in Indian bonds, potentially eliminating or minimizing the 20% levy on interest earned. Additionally, the Reserve Bank of India may permit overseas investors to purchase long-tenor sovereign bonds without ownership limits, a change not made since 2024. These steps come as the Indian rupee has faced significant depreciation, recently hitting an all-time low of 96.9650 against the dollar, prompting the government to take action to stabilize the currency. The rupee's decline has been attributed to factors such as US trade tariffs and high oil import costs. Furthermore, the government is likely to allow foreign residents to invest in shares of Indian companies through the portfolio investment scheme, further opening up the market to international investors.