The government introduced tax-free infrastructure bonds for road, rail, & irrigation projects. Issued by government entities, these secure, redeemable debentures raise funds for infrastructure development.
IFSC aimed to repatriate financial services by Indian corporations, previously conducted in offshore centers, & facilitate easier global market access for Indian corporate entities.
RBI brought a separate channel, namely ‘Fully Accessible Route’ (FAR), to enable non-residents to invest in specified government bonds with effect from April 1, 2020.
As part of the 2022-23 Union Budget, the govt introduced Sovereign Green Bonds (SGrB) to raise funds for developing green infrastructure, benefiting projects aimed at reducing carbon intensity.
In Budget 2023-24, on Feb 1, 2023, it was announced that cities will be incentivised to improve their creditworthiness to issue municipal bonds.
We might get a few bonds offering tax benefits, a conducive environment for non-resident Indian and foreign investors, and achieving the fiscal deficit target.