Politics · India

Government proposes tax rule changes to attract offshore funds and boost manufacturing

The Indian government has proposed amendments to tax laws through a Bill to be introduced in the Lok Sabha by Finance Minister Nirmala Sitharaman. These changes aim to ease tax relief conditions for offshore investment funds and extend tax exemptions for specified electronic goods and contract manufacturing by up to ten years, potentially until 2041. The government also plans to bar charges on notified digital payments and is considering reintroducing merchant discount rates on UPI transactions. The proposed amendments are intended to attract foreign investment and boost India as a global fund management hub and electronics manufacturing center.

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