Government of IndiaMinistry of Finance Budget 97-98

Budget Speech - PART A

Indexed Bonds

  1. Several countries have used a variety of indexed bonds to provide investors an effective hedge against inflation and to enhance the credibility of anti-inflationary policies followed by the government. I believe the time is ripe for India to introduce such an instrument. I, therefore, propose to introduce a capital indexed bond where the repayment of the principal amounts will be indexed to inflation.

Back Next Home

This page is prepared and maintained by National Informatics Centre for Ministry of Finance,Government of India.