Foreign ownership of Indian government bonds hits record high at 3.11 trn rupees

Foreign investors now hold 3.11 trillion rupees (~US$35.3 billion) of Indian government bonds under the Fully Accessible Route, accounting for about 6.8% of outstanding issuance. The rise reflects favourable rate outlook, India’s inclusion in global debt indices, and active currency-management by the central bank. Fund managers cite India’s stable macro profile and diversification appeal. Analysts believe further policy-rate cuts and steady currency could sustain inflows, though global yield shifts pose risks.