The Bond Revolution: How India Became a Hotspot for Global Investors in March

Overseas investment in India's index-linked bonds has crossed a milestone, reaching over ₹100 billion in March. This is mainly due to India's addition to leading global bond indices, including the JPMorgan Emerging Market Bond Index. The process of inclusion, which started in June 2024, will run through March 2025, with India's weightage in the index being gradually raised to 10%. The Eligible for Index inclusion Fully Accessible Route (FAR) bonds have experienced significant foreign accumulation. This heightened investment is predicted to be a boon for the Indian economy as it will increase liquidity and stability in the bond market. The inflows are also expected to aid India's balance of payments and make the Indian Rupee market deeper.

 

Source: Financial Express