The Indian government's recent decision to exempt foreign institutional investors (FIIs) from interest tax on investments in government securities (G-Secs) is viewed positively by market analysts, including Rahul Bajoria, Chief Economist for India at Bank of America. This policy aims to attract foreign capital and bolster the rupee's stability amid global economic uncertainties. Bajoria noted that while this measure addresses a long-standing request from investors, its effects on capital flows may not be immediate, potentially taking months or even years to materialize. He also highlighted the Reserve Bank of India's (RBI) ongoing monetary policy measures, which are designed to support financial markets and attract investments. Furthermore, Bajoria projects a realistic growth rate of approximately 6.5% for India in the current fiscal year, despite challenges. While the rupee has shown some positive response to these measures, he cautioned that external pressures on emerging market currencies could persist, with geopolitical factors such as the conflict in West Asia potentially influencing oil prices and currency stability.