JPMorgan has announced the inclusion of Indian government bonds in its widely tracked emerging market debt index, the Government Bond Index-Emerging Markets (GBI-EM). This move is expected to bring billions of dollars in investments into India, the world's fifth-largest economy.
The inclusion will commence on June 28, 2024, and India will have a maximum weight of 10% on the index. JPMorgan has identified 23 Indian Government Bonds (IGBs) with a combined notional value of $330 billion as eligible for inclusion. This decision is seen as a significant boost to India's bond market and is likely to lower borrowing costs while attracting more foreign investments.