US rate cuts can spur inflows into Indian debt: Citi Exec

Global interest in Indian debt is set to surge, potentially exceeding the expected $2 billion monthly inflow from JP Morgan's bond index inclusion. Citi's Aditya Bagree forecasts a boost as the US Federal Reserve eyes rate cuts, likely triggering EM bond fund inflows. He highlights India's sovereign debt as a top volatility-adjusted carry trade in the region. Despite recent inflows totaling $32 billion, passive investments and India's economic resilience could drive more robust foreign participation. The rupee's stability and favorable economic indicators further bolster investor confidence in Indian assets.
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