Economic Times cited a finance ministry official who declined to be named, in a move intended to attract more funds into the country as saying that the government will raise the limit on foreign investments in government and corporate bonds by USD 5 billion each.

India currently caps the total amount that foreign institutional investors can buy in domestic debt at USD 65 billion, which is distributed through categories of government, corporate and infrastructure bonds, some of which include tenor or lock in restrictions.

The official said that the increase in limits will be effective in the next 7 to 10 days.