Sep 22, 2023

BQ Explains Currently, there are 23 Indian government bonds eligible to be added to the index. 22 Sep 2023, 11:27 AM IST 22 Sep 2023, 11:27 AM IST WhatsApp A person holding Indian two rupees banknotes for photograph. After a long haul, JP Morgan Chase & Co. has included Indian government bonds in its benchmark emerging markets index starting June 28, 2024. This is most likely to bring in an influx of foreign money of as much as $25–50 billion into Indian markets, apart from the usual foreign fund inflows, according to various estimates.The inclusion in global bond indices points at India's growing allure among foreign investors due to its geopoli... After a long haul, JP Morgan Chase & Co. has included Indian government bonds in its benchmark emerging markets index starting June 28, 2024. This is most likely to bring in an influx of foreign money of as much as $25–50 billion into Indian markets, apart from the usual foreign fund inflows, according to various estimates. The inclusion in global bond indices points at India's growing allure among foreign investors due to its geopolitical importance and also as Western nations are looking for alternatives to China. While the Ukraine war has led to Russia falling off the indices, China’s economic turmoil has hampered its attractiveness. So far, the participation of overseas investors in the Indian government bonds market has been fairly low, but the country's resilience to external shocks has sparked interest in recent years. Foreign investors have bought Rs 25,262 crore worth of Indian government debt since April, according to data by National Securities Depository. The country will have a maximum of 10% allocation in the index, according to a statement by JP Morgan. The process of inclusion will take place over 10 months at roughly 1% weight per month, it said. Currently, there are 23 India government bonds eligible to be added to the index, with a combined notional value of $330 billion. ALSO READ