New Delhi, June 5 -- The Centre's decision to exempt foreign institutional investors (FIIs) from interest tax on investments in government securities (G-Secs) is a positive policy measure that could help attract overseas capital and support the rupee over the medium term, according to Rahul Bajoria, Chief Economist for India at Bank of America (BofA).

Speaking exclusively to ANI, Bajoria said the move addresses a long-standing demand from market participants and reflects policymakers' efforts to improve investor sentiment amid global uncertainty.

"I think this has been a longstanding ask from many participants in the market," Bajoria said.

His comments came after the government issued an ordinance on Friday exempting FIIs from tax on i...