Is India's credit market poised to open up?

INDIA

The recent Budget in India again highlighted the difficulties the government is going to face in funding its borrowing requirements in the months to come.

As a result, I am hopeful the government here will shortly ease the restrictions on foreign investors’ allocation to the domestic credit markets. Foreign investors have been accessing equity markets here for many years, but it seems likely opportunities in the fixed income space will emerge. This is an exciting development as yields are attractive, credit quality is generally sound and, unlike most financial markets globally, Indian fixed income is a less uncorrelated asset class with global markets, for the time being at least. India ended this last financial year with a fiscal defic...