How a trickle of foreign funds into India bonds can be turned into a flood

Overseas funds have long sought greater access to Indian bonds, drawn to an economy where the yields are among Asia's highest

The trickle of foreign funds into India’s sovereign bonds can turn into a flood if Prime Minister Narendra Modi eases access to the nation’s debt that has made it the most restrictive among major Asian economies.

That’s the finding of a survey of asset managers -- in Singapore, Tokyo, London and New York -- conducted by Bloomberg. More than 90 per cent of the 65 investors said they would add to their holdings of rupee bonds if the curbs are eased, while 76 per cent said access to the nation’s market is harder compared with Asian peers.

Overseas funds have