The Union Budget 2020 has opened up a path for Indian government bonds to be included in global bond indices.
Sharing his views on the same, Sameer Goel, head of Asia – Macro Strategy at Deutsche Bank, said, “I think the intent is very positive. After having taken a very incrementalist approach towards participating of offshore capital into the local markets, this budget holds out the promise that the government is thinking about more steps towards what is probably the best way of attracting passive offshore money, which is through listing in global debt indices.”
“We would need to see a fairly significant issuance for the rates to be sufficient enough to attract a meaningful number of money into the local debt markets at least in the short term. As a medium-term strategy, it is a very good beginning but one needs to be realistic about how much money can come in the very short term in terms of financing,” he added.