Central government officials are now hopeful the erasure of retrospective tax law will allow entry into the global bond indices within this calendar year. An entry into some of these indices is expected to generate an additional $20 billion of foreign investment into the economy.

       The government also hopes to clear one more tax issue, that of withholding tax on investments, for which the announcement is to be made soon. For the last two years, the government of India is attempting to list its sovereign debt papers in some of the global bond indices. These are built as a market weighted ...