The Reserve Bank of India's latest measures to ease foreign portfolio investment norms for government securities could mark a turning point for the country's debt markets, potentially attracting $50-100 billion in capital inflows over time, according to Vikas Garg, Head of Fixed Income at Invesco Mutual Fund.
In an exclusive interaction with ETMarkets Smart Talk, Garg says the RBI's decision to remove key investment restrictions for FPIs, expand the Fully Accessible Route (FAR) universe, and introduce complementary measures to boost foreign capital could deepen India's bond market and strengthen macroeconomic stability.