India rolled back an additional levy on foreign funds and announced other measures to boost economic growth. The enhanced surcharge on long and short-term capital gains has been withdrawn, Finance Minister Nirmala Sitharaman said Friday. She also announced an immediate infusion of 700 billion rupees ($9.8 billion) set aside in the budget last month to boost capital of banks.

Indicating no roll back of the income tax surcharge on the super-rich imposed in the budget, Finance Minister Nirmala Sitharaman on Thursday ruled out any adverse impact of it on investor confidence and said the fears of flight of capital are unfounded. On non-banking finance companies (NBFCs), she said the government will partially guarantee their high-quality pooled assets.

FPIs will return to India and other emerging markets in 2019 after staying away the previous year, a top executive at Aditya Birla Sun Life mutual fund said. "India and other EMs now offer favourable risk-reward amid improving growth, supportive macros, healthy balance sheets, light investor positioning and reasonable valuations," said Mahesh Patil, co-chief investment officer, Aditya Birla Sun Life AMC.