In the corporate debt market, investor base is mostly confined to banks, insurance companies, provident funds, PDs and pension funds. An approach of gradual opening of the domestic bond market to the foreign investors has been adopted in India keeping in view the macro-economic risks involved in providing unfettered access to them.
It is important to understand much better these developments so as to design better economic policies. European citizens seem to be increasingly disaffected with Europe. In many countries people feel poorer, they are tired of austerity, and they blame Europe, as is happening, for example, in Italy. Everywhere voters are increasingly turning to anti-European parties. How dangerous can this be for the European project?