The possible inclusion of Indian treasuries to Bloomberg s Emerging Market Local Currency Index could potentially trigger active and passive foreign inflows worth $15billion -20 billion over FY25.
For instruments like infrastructure bonds to thrive, especially given the risks associated with mega projects, a collaborative approach to risk management between the government and the private sector is vital
Read more about Sovereign bonds in India signal growing doubts on RBI s easy policy stance on Business Standard. The inflation shock is adding to uncertainty on whether the central bank would stick to its pledge of keeping policy accommodative to support growth after economy was battered by a deadly Covid wave