The Indian government has extended its tax exemption program for sovereign wealth funds and pension funds for an additional five years, through March 31, 2030, in a move aimed at attracting more long-term foreign investment into the country’s infrastructure sectors.
According to a statement by India’s Ministry of Finance, the exemption covers income generated from dividends, interest, and long-term capital gains on qualified investments in priority infrastructure sectors such as roads, electricity, ports, and telecommunications.
The extension, according to news agencies, is part of India’s broader strategy to secure sustainable foreign capital to fund its ambitious infrastructure development agenda. These exemptions have already resulted in a notable increase in foreign direct investment (FDI) from global funds.
Among the approved beneficiaries is the Kuwait Investment Authority (KIA), which is one of approximately 35 foreign sovereign and pension funds recognized by India to qualify for the tax waiver. This highlights Kuwait’s important role as a key investor in emerging markets and reflects its growing presence in the Indian economic landscape.
While some experts argue that a longer-term exemption would have better aligned with the capital-intensive nature of infrastructure projects, the five-year extension nonetheless signals India’s commitment to supporting economic development and ensuring stability for long-term investors.
