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The Hindu·3 min read·medium

How sustainable is the record flow of FPIs into Indian bonds?

A
Ashokamithran T.
How sustainable is the record flow of FPIs into Indian bonds?
AI Summary

Foreign portfolio investment in Indian bonds reached a record ₹55,518 crore in June 2026 following government tax reforms and expanded access to government securities. Experts remain cautious about the long-term sustainability of these inflows due to broader macroeconomic conditions.

The overall inflow of foreign investor money into India’s bond market crossed a record ₹55,518 crore in June 2026. Experts, however, aired concerns over sustainability of the momentum as the macroeconomic climate had not turned completely conducive.

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