Opinion | Indian bonds could well be the toast of global investors
This requires bond market reforms, which are also key to India achieving its broader economic goals
The current low-to-negative interest rate environment around the world is making Indian bonds an even more attractive option for certain investors. India has an active and open financial market. The country’s stock market is among the 10 largest in the world, and its fixed income market is the fourth largest among emerging economies. However, cultivating a stronger bond market to help underwrite the burgeoning economy is necessary if India is to reach its bold ambition of becoming a $5 trillion economy by 2024, and, according to Bloomberg Economics’ base-case estimates, $8.4 trillion by 2030. If it can do so, India’s economy could be the third largest by 2026, behind only China and the US.