India's decision to exempt foreigners from taxes on government bonds and broaden access to the debt market is expected to make the country more attractive to overseas investors, catalyse fresh inflows and strengthen its case for inclusion in global indexes. On Friday, policymakers unveiled a wide-ranging set of measures to draw in overseas capital while shoring up the currency and external balances, which have been strained by higher oil prices. They scrapped withholding and capital gains taxes on foreign investments in government bonds, broadened the pool of securities that are available without investment limits and introduced incentives to encourage banks to raise foreign currency deposits from non-resident Indians and for companies to tap overseas borrowings. The slew of measures, rolled out in response to the oil shock that has hit Indian assets, is beginning to lure foreign investors back into an overlooked market against a backdrop of rising global rate volatility.