Industry Odisha Bureau, Jul 7: The flow of Foreign Portfolio Investment (FPI) into India’s bond market reportedly crossed to a record tune of Rs 55,518 crore last month (June) this year.
Media reports said that, “FPI investment under the general limit in debt securities, which contains both corporate bonds and government securities, came in at Rs 55,518 crore in June 2026.”
Experts in money matters reportedly dubbed: “It augurs well and good for India’s health of economy when the country has already experienced a net outflow of foreign funds from Indian capital markets and a constantly depreciating rupee.”
The economists and financial experts have also reportedly appreciated the significant and rational move by saying that, “The Government of India (GoI) waived Long-Term Capital Gains (LTCG) tax on foreign investment in bonds in the early June this year. Both the GoI and the Reserve Bank of India (RBI) have further expanded the Fully Accessible Route (FAR) to include new long-term Government Securities with 15-year, 30-year, and 40-year tenors, as well as Sovereign Green Bonds.”
As per media reports, “Investments under the Fully Accessible Route (FAR) were the highest since September 2024 when it was introduced, and thus, recorded an inflow of Rs 21,652 crore in June 2026. If they are put together, a more amount was compensated for the significant outflow of Rs 49,340 crore from equities. Hence, the June of this year has been a positive month for the Indian bond market”.
Notably, “Foreign Portfolio Investment (FPI) refers to investments made by foreign investors in a country’s financial assets such as stocks, bonds, mutual funds, and other securities without taking control or ownership of the companies involved. Unlike Foreign Direct Investment (FDI), which involves long-term strategic stakes and management control, FPI is primarily aimed at financial returns and allows investors to diversify their portfolios internationally.”
