Overseas investors have invested a record ₹39,640 crore in Indian government bonds during June so far. The inflows follow tax exemptions and expanded access to sovereign debt. These steps are intended to increase foreign participation in the market.
The surge comes amid measures designed to attract more overseas capital to Indian debt. Officials have highlighted tax relief and broader access as key drivers behind the increased activity.
Expectations are growing that the inflows could support India's potential inclusion in global bond indices. Market observers note rising confidence in Indian securities despite external pressures.
Some experts have urged caution because of high US Treasury yields. They point out that while participation has strengthened, investors should monitor global interest rate trends closely.