India Cuts Bond Tax, Eases Access for Global Funds to Lift Rupee

India’s central bank and government unveiled a “bazooka” package to support the rupee after it plunged to a record low, dusting off a 2013 taper tantrum-era playbook to spur foreign inflows.

The Reserve Bank of India on Friday outlined steps to make it easier for overseas investors to buy government bonds and stocks. Separately, the government announced a reduction in capital gains taxes on debt investments by global funds.

The RBI also kept its benchmark repurchase rate unchanged at 5.25%, in line with most forecasts, opting to wait out current inflation threats.

The synchronized action reflects India’s determination to ...