ETMarkets Smart Talk | RBI's FPI reforms and index inclusion could unlock up to $25 billion in debt inflows: Dhawal Dalal of Edelweiss MF

RBI's removal of FPI investment limits in government securities and expanded market access could unlock $20–25 billion in incremental debt inflows over 12–24 months, according to Dhawal Dalal of Edelweiss MF. The MPC kept the repo rate unchanged at 5.25% with a neutral stance, and Dalal believes the rate-cut cycle has effectively ended with the next move likely upward. The reforms also strengthen India's case for inclusion in global bond indices, though near-term FPI flows may be tempered by compressed India-US yield spreads and global tightening expectations.