India mulling ways to change debt limits for foreign investors: Official
Mumbai: The government is considering options on how to change its current investment limit for foreign investors in domestic debt to make it eligible for inclusion into global benchmarks, a finance ministry official said on Thursday.
One option was to have a "limit linked to a percentage" of a particular criteria such as market size, outstanding debt or gross domestic product, said the official, who declined to be identified because he was not authorised to talk to media.
The official said India could also raise its overall limits in bonds, currently at USD 81 billion.
However, the official added scrapping the foreign debt investment limit altogether was a decision that would not be taken "so lightly."
India is in talks to include its debt into benchmark indexes compiled by banks such as J.P.Morgan, hoping to attract billions of dollars in investment.