India's foreign exchange restrictions have led to increased risk for foreign investors in India, making it costlier and more difficult for overseas investors to hedge against rupee swings. This has led to a decrease in the appeal of Indian bonds and increased risk of earnings for equities. One-year hedging costs in the onshore market have risen by around 30 basis points since the measures were introduced, and offshore, with NDF hedging cost increasing by nearly 70 basis points. The high costs have significantly reduced the carry and fallout from Indian government bonds. Foreign investors have sold about $2.26 billion of Indian government debt since the Iran war began, with sales accelerating after the FX curbs were announced. The Iran war has further exacerbated concerns about India's economic outlook.