Foreign Investors Pour Nearly ₹40,000 Crore Into Indian Bonds Following RBI Policy Moves

Foreign Portfolio Investors (FPIs) have injected approximately ₹40,000 crore into Indian government bonds during June, marking a significant surge in capital inflows. This trend follows recent strategic measures implemented by the Reserve Bank of India (RBI) and the central government on June 5, which aimed to deepen domestic financial markets and improve liquidity access.

Among the key policy shifts is the RBI’s proposal to broaden access to the term money market, specifically inviting Non-Banking Financial Companies (NBFCs) and large corporations to participate. By streamlining these mechanisms, the government expects to bridge the funding gap for domestic entities while simultaneously attracting global capital seeking stable, high-yield emerging market instruments.

The rapid absorption of foreign capital in just two weeks signifies strong international confidence in India’s ongoing structural reforms. As these measures continue to integrate more institutional players into the money market, the broader impact is expected to facilitate improved transmission of monetary policy and provide Indian firms with better-structured credit access throughout the remainder of the fiscal year.