Foreign Portfolio Investors (FPIs) invested Rs 11,000 crore in Indian government securities (G-Secs) after their inclusion in the Bloomberg Emerging Market Index on January 31, 2025. This move is set to boost foreign investment in Indian bonds.
The Clearing Corporation of India (CCIL) recorded an increase in FPI investment in government bonds under the Fully Accessible Route (FAR). The investment rose to Rs 2.70 lakh crore by February 4, 2025, from Rs 2.59 lakh crore on January 30, 2025. The inclusion will be phased over 10 months, with India’s FAR bonds reaching full market value by October 2025.
In June 2024, FPIs invested Rs 62,431 crore in Indian government bonds following JP Morgan’s inclusion. The rise in foreign investment is expected to enhance liquidity and strengthen India’s global bond market presence.