Foreign funds are steadily increasing exposure to Indian debt

Foreign funds are steadily increasing exposure to Indian debt amid growing expectations that inclusion of the nation’s bonds into global indices is imminent.
 
Bond purchases by overseas investors under the uncapped Fully Accessible Route, climbed to Rs 35 billion ($476 million) in August, the highest this year. They’ve bought Rs 32.2 billion of bonds so far this month, set for a fifth straight month of inflows, following outflows from January-April.
 
Global index provider FTSE Russell, which placed Indian bonds on the watchlist for possible inclusion in its debt index, is set to announce the result of its review