The Indian government is preparing further policy steps to protect the economy from the West Asia conflict. These measures will ensure sufficient availability of goods and raw materials. The focus is on stabilizing the Indian currency and foreign exchange flows. Additional measures will be announced as needed. The government is closely monitoring trade deficits and potential impacts on subsidies.
Government and RBI measures to boost foreign investment in government securities led to a bond rally, with benchmark 10-year G-Sec yields softening. Exemptions from long-term capital gains and withholding taxes for FPIs in G-Secs, along with expanded investment options, are seen as positive for the fixed income market.