India boosts foreign investment limit to US$75b
In hopes of buoying the rocketing current account deficit.
According to BBVA Research, in their latest bid to attract capital inflows to help finance the high current account deficit and arrest further rupee weakness, the Indian authorities last Friday raised the foreign institutional investor (FII) limits on government securities and corporate bonds.
"The raise is by USD 5bn each (to US$75bn) (only long-term investors such as sovereign funds, insurance funds, pension funds and central banks are allowed to invest). The government is also currently mulling over whether to further liberalize external commercial borrowings for Indian companies," BBVA added.