The government is likely allow foreign institutional investors (FIIs) to invest up to $5 billion more each in Indian corporate and government bonds in a move to attract more capital to boost investment and halt the slowdown in the economy.
In December, government had raised the
overall FII limit in Indian bonds to $75 billion.
The move will help ease the pressure on the government in completing its market borrowings and aid companies to raise more funds through bonds needed for expansion.
At present, the FII investment limit is capped at $20 billion for government securities, $20 billion for corporate bonds and $25 billion for infrastructure bonds.