Record foreign ownership of Indian bonds amid rate and FX outlook

Foreign investors have taken holdings in Indian government bonds to record highs, drawn by the favourable rate outlook and central-bank FX market support. The surge in foreign ownership comes as one of the key drivers of India’s capital-flow story, even as external vulnerabilities remain a watchpoint. The developing trend suggests India is increasingly being seen as a resilient destination for global fixed-income capital amid rate stabilisation and FX management by the Reserve Bank of India.