Foreign portfolio investors are directing record amounts into India's government securities this month following recent policy adjustments.
The inflows stem from tax exemptions on interest and capital gains, an expanded range of eligible investments, and eased limits on foreign holdings. A stable rupee and reduced geopolitical tensions have further supported the trend.
Momentum is expected to continue based on global economic conditions and possible additions to major international bond indices.
The policy measures have broadened access for overseas funds to India's sovereign debt market.