On Friday, the Indian government announced significant reforms designed to attract foreign investment and strengthen the capital account. Key measures include allowing individual Persons Resident Outside India (PROIs) to invest in Indian equities with increased limits—up to 10% in individual companies and a total of 24% across all investments. Additionally, the government has eased regulations for foreign portfolio investors (FPIs) in government securities by lifting restrictions on short-term investments and concentration limits. To further incentivize foreign investment, the government will exempt FPIs from income tax on interest and capital gains from government bonds, effective from April 1, 2026. These reforms aim to simplify market access and enhance the investment experience, positioning India as a competitive global investment destination amidst current economic challenges. The finance ministry emphasized that these changes will help attract stable, long-term capital inflows, including from pension funds and sovereign wealth funds, thereby boosting foreign exchange inflows and supporting the growth of Indian capital markets.