The Union Budget had paved the way for including Government of India securities in global indices and this would mean lower interest rates for the common people, corporates and for the government.
In an exclusive interview to CNBC-TV18's Managing Editor Shereen Bhan, Principal Economic Adviser Sanjeev Sanyal said India's inclusion in the bond index is likely to happen in the current fiscal.
Sanyal said, "Virtually all the niggling issues between us, the bond inclusion agencies and other associated infrastructures, those are getting systematically worked out. One of the points about bond inclusion is that once you are in there, everybody who follows that bond inclusion has to invest according to the proportions laid out in the inclusion."
This means bond inclusion agencies have to be very clear that their clients and investors are fully set up to be able to invest once it is done.
"I think in this financial year we should be able to get ourselves included," Sanyal said.
If an investor who buys one of our bonds, wants to sell it, it will be possible for him to sell it to another investor who is still outside the country without having to come back to India and do it. The niggling issues are mostly technical issues.
"On our side, we want certain clarity on KYC and so on. So all of those things have to go back and forth a few times but they have basically been sorted out," Sanyal briefed.
There was some issue about capital gains tax - as to what happens when there is a transaction between non-residents and residents.
"I believe that has been taken care of, some discussion has happened on this and the concerned officials are taking some measures," Sanyal said.
(Edited by : Abhishek Jha)
First Published: IST