Fear of foreign capital: Why is India turning away bond buyers?

The country's fear of foreign capital is irrational and self-destructive

Hoping to jump-start its "Make in India" manufacturing push, India's government has rolled out the welcome mat for foreign investors. It should consider doing the same for global bond buyers.

Indian bonds are, at the moment, suffering a full-scale rout. On Monday, yields on benchmark 10-year government debt -- called the “G-sec” rate in India -- continued their slow creep upwards to 7.78 percent. Many expect them to cross eight percent at some point in the next few months. How swiftly have things turned bad? Well, as recently as last August, G-Sec yields were south of 6.5 percent. By the