Foreign Investments In Indian Bonds Set To Reach Highest Levels Since 2017 With Over $6 Billion In Inflows In 2023

In a significant financial development, foreign investments in Indian bonds are on a trajectory to reach the highest levels since 2017, signaling a robust appetite among investors for local debt in anticipation of India's forthcoming entry into global indices.

Data compiled by Bloomberg, and reported by Business Standard, reveals that inflows into fixed income, including corporate debt, have already surpassed the $6 billion mark in 2023.

Notably, this month alone accounts for approximately a quarter of the total inflows, underscoring the growing international interest in India's debt market.

The monthly inflows into the government bonds segment are poised to hit their highest levels since April 2020, marking a notable streak and showcasing sustained investor confidence.

The decision by JPMorgan in September to incorporate India into its emerging market gauge has evidently played a pivotal role in encouraging investors to bolster their positions in local bonds.

Beyond the realm of bonds, the Indian equity landscape is also witnessing a surge in foreign capital.

Bolstered by robust growth in both corporate earnings and the overall economy, global funds have poured in over $12 billion into Indian shares this year, outpacing other emerging Asian markets.