FII limit in debt market may go up
However, the finance ministry is considering further liberalisation of external commercial borrowings (ECB) norms for companies besides raising FII limits in Indian debt market.
At present, FIIs are allowed to invest in the Indian debt market up to $8 billion, of which $3 billion can be invested in corporate debts and $5 billion in government securities.
On Tuesday, the government included mining, exploration and refinery sectors under the ambit of infrastructure so that they can access overseas borrowings more liberally up to $500 million into India for rupee capital expenditure.
Infrastructure includes seven sectors -- power, telecommunication, railways, road, sea port and airport industrial parks and urban infrastructure (water supply, sanitation and sewage projects).
Image: Finance Minister P Chidambaram addresses the media. | Photograph: Pal Pillai/AFP/Getty Images
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