[Indian Government Plans to Expand Tax Incentives to Boost Foreign Investment and Domestic Manufacturing] According to sources familiar with the matter, India will seek parliamentary approval for a series of tax adjustments to boost foreign investment and domestic manufacturing. Citing internal discussions and a publicly available list of bills, sources say lawmakers will seek to pass legislation formalizing tax breaks for overseas investors purchasing Indian sovereign debt and exempting offshore funds from tax obligations if their investments are managed by Indian fund managers. The sources added that parliament will also vote on whether to extend tax breaks for overseas suppliers providing equipment to domestic electronics manufacturers and to offer incentives for data centers and diamond mining. Modi has been taking a series of measures to curb capital outflows and support the rupee. This move is particularly urgent in the wake of the Iraq War, as it aims to cushion the economic impact and enhance the economy's resilience to external shocks.
