India Bond Market Sees $70 Billion FCNRB Inflow Boost: Bloomberg Index Inclusion Next?

India's bond market could witness a major liquidity boost as expectations build around $70 billion in FCNR(B) inflows over the next few months. Aditya Pagaria, Senior Fixed Income Fund Manager, Axis Mutual Fund, explains how these inflows, along with strong FPI participation, could strengthen demand for government bonds. He also highlights the government's decision to remove capital gains tax on certain government bonds, a move that has supported foreign investor interest and improved the prospects of Bloomberg Index inclusion.