Why is India giving foreign investors a tax break?

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[upbeat music] Hello, folks. You're tuned into Finshots Daily. In today's episode, we explain why the government is changing bond tax rules for foreign investors. Before we begin, here's a quick word from Team Ditto. Life has a way of surprising us, and not always in a good way. Sometimes it's a sudden illness or an unexpected hospital visit that can shake up everything. In India, families still pay about thirty-nine percent of medical expenses directly from their own pockets, and just one hospital stay can wipe out years of savings. The easiest way to protect yourself is by getting a good health insurance plan. It's way cheaper than footing one huge bill. And if you're unaware where to start, book a free call with Ditto. No spam, just honest jargon-free guidance. Trusted by over eight lakh people for their health and term insurance needs. The link is in the description. Now back to the story. Every year, the government needs to borrow trillions of rupees, be it for infrastructure, skill development, or any number of government initiatives. And one way to do that is to issue government securities or G-Secs. Think of them as IOUs. You lend money to the government today, and in return it promises to pay you interest and repay you the principal later at a predetermined date. Mostly banks, insurance companies, and pension funds buy them apart from retail investors. And over the years, India has tried to make our domestic bond market more attractive to foreign investors, too. They did this through something called the FAR, or Fully