India’s bond market is attracting record foreign flows after the government secured entry into JPMorgan, Bloomberg emerging-market and FTSE Russell indexes, treasury officials said.
The 1.5 trillion dollar government securities market has benefited from tax reforms eliminating capital gains and withholding taxes for foreign portfolio investors.
Macro stability and Reserve Bank of India currency support have further boosted confidence. Policymakers are now lobbying for inclusion in Bloomberg’s Global Aggregate Index.
Analysts said index-driven inflows have lowered sovereign borrowing costs and created headroom for infrastructure spending.
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Sources:
https://www.business-standard.com/economy