The Centre may increase the government bond investment limit of foreign portfolio investors (FPIs) to at least 10 percent of the outstanding from 6 percent now and the decision for this is likely to be announced in the upcoming Budget, reported Business Standard.

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The newspaper reported that the government aims to incorporate local bonds into global bond indices.

FPIs, including long-term investors, can currently invest up to Rs 3.61 trillion in government bonds, of which they invested Rs 2.16 trillion as of December 12. However, the share allotted to FPIs is inadequate to be included in global bond indices such as those by JP Morgan and Bloomberg-Barclays, the report said.

The finance ministry has written to JPMorgan and Bloomberg to advance such inclusion, the report added quoting sources.

The government’s plan might include a possible sovereign bond, but the Reserve Bank of India (RBI) is opposed to it as the central bank doesn’t want to face a currency risk, the report said.