India’s central bank on Monday kept foreign debt investment limits unchanged for 2026–27, as foreign investors continue to hold lesser amounts of government bonds than permitted.
The central bank, which revises these limits annually, said overall investment ceilings will increase in absolute terms as the pool of government debt increases.
Here are the details:
Foreign portfolio investment limits for 2026–27 were kept unchanged at 6% for government securities, 2% for state government securities and 15% for corporate bonds.
The total investment limit for government securities was revised to 3.04 trillion rupees for the October–March half of 2026–27.
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The aggregate notional limit for credit default swaps sold by FPIs was set at 5% of the outstanding stock of corporate bonds, with an additional limit of 3.30 trillion rupees for 2026–27.
All existing and new FPI investments under the voluntary retention route will align with general route limits from April 1.
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