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Overseas ownership of Indian government bonds climbed about $9 billion in just five months since JP Morgan announced its decision to include local sovereign debt in its emerging markets index, illustrating the attractiveness of fixed-income assets in the worlds fastest-expanding major economy for bulge-bracket funds in a constant global hunt for stable currencies and credible investment options.
Foreign portfolio investors (FPIs) have purchased ₹71,817 crore - or around $8.7 billion - worth of Indian government bonds since September 22, the day JP Morgan announced the index inclusion, latest data by Clearing Corporation of India Limited (CCIL) showed. To be sure, for the whole of 2023, overall FPI investment in Indian debt - including corporate bonds - was $8.3 billion.
Foreign investors bought bonds under the 'Fully Accessible Route' or FAR worth over 23 billion rupees ($276.25 million) on an average in each of the three weeks since Sept. 22 when JPMorgan said it would include 23 such securities in its widely tracked index from June 2024 onwards.