
Foreign Investors Shift from Indian Equities to Bonds Amid Index Inclusion Prospects
Foreign investors are increasingly favoring Indian bonds over equities, driven by India's removal of tax on overseas bond investors and the anticipated inclusion in the Bloomberg Global Aggregate Bond Index by early 2027. This move is expected to attract $25-27 billion in inflows by FY2028, helping narrow India's balance of payments deficit and shore up the rupee.