• The inclusion of Indian government bonds in the JP Morgan Emerging Market Local Currency Government Bond Index has significantly boosted the outlook for Foreign Portfolio Investors (FPI) in India.
• As per projections, the FPI holdings of outstanding FAR bonds (Foreign Exchange Reserves bonds) could rise to 3.4% by 2025.
• This increase reflects the growing international confidence in India's fiscal stability and the attractiveness of Indian government bonds as an investment opportunity for global investors.