India could be on the verge of a significant foreign capital windfall, but it hinges on two policy moves that are now firmly on the table, according to Aditya Bagree, Head of Markets India at Citi.
Speaking at a Citi investor conference that drew over 1,600 global clients to Mumbai, Bagree said removing the withholding tax on government bonds and securing inclusion in the Bloomberg Global AGG Index could together bring in $20–25 billion of passive, stable inflows into Indian government bond markets, a development he described as solving "a lot of issues" simultaneously.
