FPIs pump record funds into G-Secs after policy shift (opens original article in a new tab)

Foreign funds poured into India's government bond market at a record pace in June 2025, driven by tax exemptions, relaxed investment rules, and a stable rupee, with continued inflows dependent on global conditions.

• Foreign portfolio investors (FPIs) injected a record ₹33,000 crore into India's government securities in June 2025, six times higher than May 2025.
• Tax exemptions on interest and capital gains, relaxed investment limits, and expanded securities lists drove FPI inflows, with continued momentum dependent on global factors.
• Reforms including removal of short-term investment limits and inclusion of 15, 30, and 40-year bonds in the fully accessible route boosted investor confidence.