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Global investors are dumping Indian bonds. Blame it on slow pace of reforms

While financing costs have remained subdued this year, the risk is that the growing supply of Indian bonds begins to outstrip local demand

Better rated firms moving to bond mkt, says RBI report

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4 min read Last Updated : Dec 18 2020 | 10:48 AM IST

Even when viewed in isolation, the $14 billion outflow from India’s bond market in 2020 is remarkable: Foreign investors have never sold so much in a single year.

That they did so at a time when Chinese bonds are attracting record foreign inflows underscores just how frustrated some money managers have become with the pace of capital-market reforms by Narendra Modi’s government.

While China’s steady progress on bond-market liberalization has earned it a spot in benchmark indexes and helped lure $119 billion of inflows this year, India still has some of Asia’s toughest restrictions on foreign

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