Should India open up the debt market?

Global bond indices play a critical role in influencing cross-border flow of debt capital. India isn't there as yet

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Even though the equity market was opened up for foreign investors immediately after the early 1990s, the norms for foreign investment in debt were released in 1995 and in 1997, Rs 29 crore trickled in

Tamal Bandyopadhyay

6 min read Last Updated : Apr 29 2019 | 1:31 AM IST

On April 1, the bonds of the Chinese government and its three policy banks responsible for financing economic and trade development and state investment projects were added to the Bloomberg Barclays Global Aggregate Bond Index for next 20 months. Following this, as much as $150 billion could flow into the world’s second largest economy, which has been showing signs of slowdown.

With at least $1.5 trillion of outstanding debt securities, China presents one of the largest central government bond markets in the world. Besides, there are close to $1.8 trillion of policy bank bonds, highly rated by virtue of the government

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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