India’s central bank is rolling out the welcome mat for foreign money. The Reserve Bank of India issued an updated Master Direction on Foreign Investment in India on January 20, 2025, streamlining the rules that govern how overseas capital enters the country’s debt, equity, and government securities markets.
The revised framework is designed to simplify the process for foreign portfolio investors (FPIs) looking to park money in Indian assets. Investment limits for central government securities were set at approximately 4,62,490 crore rupees for the first half of FY 2026-27.
What the RBI actually changed
Simplified FPI rules for government securities investment sit at the center of the changes. Foreign portfolio investors have historically found India’s bond market appealing but operationally frustrating. The new framework is meant to reduce that friction, making it easier for global funds to buy and hold Indian sovereign debt.
A long road to regulatory modernization
