India, June 4 -- By Shailesh Yadav

New Delhi [India], June 4 (ANI): In a significant move to bolster India's appeal as an investment destination, the Union Cabinet on Wednesday approved the scrapping of capital gains tax on investments in government securities by Foreign Portfolio Investors (FPIs).

The decision, taken at a Cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday, will be implemented through an ordinance amending the Income Tax Act.

The government has chosen the ordinance route to fast-track the relief measure, bypassing the need to wait for a parliamentary session. A formal notification is expected to be issued by this week, government sources told ANI.

Under the existing tax framework, foreign investors a...