The excitement is palpable. With financial markets settling into a new base of higher for longer, investors are starting to venture into the emerging markets. Among these markets, India stands out above the rest. Years of bold reforms have turbo-charged economic activity attracting both direct and portfolio investors looking to ride the wave of optimism and opportunity. It was the second highest among the G20 countries and nearly twice the average for emerging economies. Its strong showing was on the back of solid domestic demand, infrastructure expenditure and the strength of its financial sector.

Within the financial sector, India’s bond market is attracting consideration attention. 2024 is likely to be a year of significant change and opportunity. Its inclusion into the JPMorgan Government Bond Index-Emerging Markets (GBIEM) global index suite is set to boost foreign investors’ participation. The bond market is expected to play an important role to support the country’s ambitious infrastructure build out. With investors’ interest accelerating, it also is likely to boost the types of issuers and instruments that will become available in the coming years especially as the government and the central bank introduce reforms to improve market access, liquidity and transparency.

The expansion of India’s capital market is a positive development for the fastest growing industry segments such as services exports, healthcare, IT, real estate, fast-moving consumer goods, and renewable energy. These sectors are also set to add to India’s sustainable bond market, a rapidly growing segment of the country’s capital market offering investors an opportunity to finance projects that have positive environmental and social impacts.

From the government’s fiscal stimulus to the central bank’s accommodative monetary policy there are high expectations for the country’s fixed-income market. However, there are also some challenges and risks that could affect the bond market performance, such as inflation, interest rates, fiscal deficit and uncertain global market conditions.

Amid this fascinating backdrop, The Asset is pleased to be hosting the 19th Asia Bond Markets Summit – India Edition. The Summit brings together issuers, investors and policymakers to discuss the most pressing concerns affecting the market and examine the opportunities and challenges in the year ahead.