Foreign investment in Indian bonds hits 5-month high
Foreign investors pumped ₹9,690 crore into Indian government bonds in August—the highest in five months and a big jump from July's numbers.
Why the sudden interest?
More foreign investment means stronger confidence in India's economy, alleviates pressure on the rupee, and healthier bond markets.
The attractive yield gap—Indian 10-year bonds offered 6.56% versus the US's 4.23%—is making global investors take notice.
India's inclusion in global bond indices
India's upcoming inclusion in major global bond indices like FTSE Russell this September is expected to pull in passive funds right as inflation cools off and other emerging markets look risky.
This boost helps lower borrowing costs and may help bring more liquidity to both government and corporate sectors.
Potential roadblocks ahead
While this wave of inflows is great news, things like global uncertainty or currency swings could slow it down.
For now though, the momentum looks promising for India's financial future.