Millennium Post Delhi|February 22, 2020
NEW DELHI: Reserve Bank of India Governor Shaktikanta Das has said the central bank has already initiated discussions with some institutions and efforts are on for inclusion of government bonds in global indices as quickly as possible.
The development would attract higher foreign flows as many overseas funds are mandated to track global indices. It will help bring in large passive investments from overseas, as a result more domestic capital would be available for industry as crowding out to that extent would be reduced.
"That is work in progress. We have had our discussions with some institutions which maintain these global index... not possible to spell out a timeline, but it is a work in progress. Our effort will be to see that it is taken forward as quickly as possible. I don't want to give a timeline," he said in an interview.
This was a long-pending suggestion of foreign investors that was addressed in the Budget this year.
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February 22, 2020