Foreign institutional investors (FIIs) have pumped $2.5 billion into the Indian debt market so far this calendar year, of which $1 billion has been invested in March alone, as per latest data from the market regulator Securities and Exchange Board of India (Sebi).

Analysts ascribe the inflows into debt market to the easing of investment norms for FIIs buying government and corporate bonds.

FIIs infused a net amount of $1.2 billion (Rs 6,532 crore) during March taking the total for 2013 so far to $2.49 billion (Rs 13,480 crore) for Indian bond market, according to Sebi data. FIIs had pumped in $743 million (Rs 4,000 crore) in February and $551 million (Rs 2,947 crore) in January. However, as of March 26, FIIs were gross buyers of debt worth Rs 24,089 crore.

FIIs have also invested $1.5 billion (Rs 8,557 crore) in the stock market in March, taking their overall investment to $10.2 billion (Rs 55,055 crore) so far this year.

They had pumped in $4.57 billion in February and $4.05 billion in January. It is significant to note that Finance Minister P Chidambaram last week had stated that the government would remove restrictions and sub-limits within  two categories - government securities and corporate bonds - from April 1. 

It will clamp the ceiling of $25 billion for government securities and $51 billion for bonds issues by companies.