India Rolls Out Steady FDI Reforms in Insurance and Bond Markets to Unlock $40 Billion Inflows

India is pursuing calibrated FDI reforms rather than a single fix, officials said on June 9, highlighting phased measures across insurance and bond markets. The 100% FDI liberalization in insurance has already drawn investor interest, while the June 5 tax exemptions on government securities and expanded Fully Accessible Route bonds aim to strengthen India’s case for Bloomberg Index inclusion. Analysts project $40–50B inflows in FY27, with passive flows of $25B possible if index entry is secured.