Making progress: People at an open air evening market in Ahmedabad. India has already received about US$12bil since the inclusion announcement in September and liquidity in the banking system moved into surplus this month. — Reuters
MUMBAI: India’s federal budget should arm the central bank with a time-tested tool to deal with a potential surge in bond flows on the nation’s entry into a key global index, according to the country’s largest asset manager.
“Rather than selling long bonds from their book and distorting the market, you can issue short-term government securities,” Rajeev Radhakrishnan, chief investment officer for fixed-income at SBI Funds Management Ltd, said.
