India’s stock market is getting more global media attention as it hits new highs, but surprisingly this year it is the bond market which is getting more international money. Foreign investors have been net buyers of more than $26 billion in rupee-denominated bonds this year. That’s the largest ever inflow into Indian debt. International investors owned $23 billion of rupee-denominated company bonds as of Dec 10, more than twice what they owned at the beginning of the year.
Indian companies have also sold $18 billion worth of non-rupee bonds, mainly in U.S. dollars this year. That’s 80% more than they did in 2012, according to the India unit of The Royal Bank of Scotland. Fitch Ratings expects more Indian companies to sell bonds overseas where they can raise money cheaply. “The growth is likely to be driven by the need to refinance debt and fund (capital expenditure) once the investment cycle restarts,” Fitch Ratings said in a recent research note.
Analysts and bankers expect the demand for Indian debt to remain strong in 2015, particularly for bonds issued by Indian companies in dollars.
Last updated: December 26th, 2025
