Indian government bonds have gained attention recently due to their inclusion in a leading emerging markets bond index starting from 28 June. This key milestone has sparked renewed interest from global investors.
”Emerging Market bonds, including Indian bonds, may offer attractive opportunities for investors in search of higher yields as inflation slows and the Federal Reserve is approaching its first rate cut.”
- The inclusion of Indian bonds in a prominent emerging markets index has sparked renewed investor interest.
- India is a structural growth story, supported by a prudent government spending approach.
- Emerging Market bonds may provide opportunities for yield-seeking investors.
India is expected to be the fastest-growing economy among the G20 in 2024 and it is currently undergoing a significant transformation driven by increased investment and favourable demographics. With expectations of strong economic growth for the country, we believe the government is likely to broadly maintain a prudent fiscal stance.
On monetary policy, the Reserve Bank of India is vigilant on inflation and appears committed to bringing inflation down to its 4% target.
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