Blow to Modi govt’s economic policies: Foreign investors continue to exit Indian bond market
New Delhi: Foreign investors are rapidly withdrawing from Indian markets due to the flawed economic policies of the Modi government.
The Modi government’s claims regarding economic growth have fallen flat. Global investors, disillusioned by Modi’s poor economic strategy, are losing confidence in India and are swiftly pulling out of the Indian bond market.
According to the Indian publication The Wire, foreign investors are moving funds from Indian government bonds to developed nations in search of safety and better returns.
Since August, foreign investors have sold Indian bonds worth Rs 9.87 billion. Indian investment has suffered a major setback after Bloomberg decided not to include Indian local debt in its global market indices.
Foreign investors are fleeing the Indian market due to yield differentials. Indian journalist Abhinav Trivedi states that low returns, high valuations, a weak currency, and high taxes are dampening the appetite for investment in the Indian market among global investors.
