Foreign holdings in Indian government bonds hit record highs

Foreign investors have taken Indian government bonds holdings to an all-time high of approximately ₹3.11 trillion (≈ $35.4 billion), representing about 6.8% of issuances available under the Fully Accessible Route (FAR). This surge has been driven by expectations of rate cuts, inclusion of Indian debt indexes and supportive currency interventions by the Reserve Bank of India. Portfolio flows into India’s fixed income are bolstering the macro outlook, though analysts warn external risks and global rate shifts could reverse the trend.