- In a Bloomberg survey, exclusive to Mint, 58% of respondents find it ‘much more difficult’ to access India’s markets than the others they participate in
- Top global asset and fund managers said they find accessing India’s financial markets more difficult than other key markets
Investors see opportunities in India’s bond market but cite capital controls, low market liquidity and lack of electronic access as key barriers. There is considerable optimism that improving ease of access to India’s financial markets will generate new investment, but there are significant barriers to India achieving its ambitions, according to a Bloomberg survey shared exclusively with Mint.
International investors also highlight a pressing need to remove barriers to foreign participation in the debt capital market, reform the taxation system, overhaul regulations, and encourage foreign investors to play a bigger role in the economy. Many of these steps are also prerequisites for India’s eventual inclusion in global indices that could channel its share of trillions of dollars of passive global investment into the economy, they said.
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Top global asset and fund managers said they find accessing India’s financial markets more difficult than other key markets. An overwhelming 76% of respondents found it either “much more difficult” and “more difficult” to access India’s financial markets than the other markets they participate in, the survey revealed. The stark figures underscore the potential that India could unlock if it increases its ease of access, it revealed.