The Federal Retirement Thrift Investment Board s (FRTIB), one of the US government s main retirement funds, decision to change the benchmark index for gaining international exposure will channel $3.6 billion (Rs 30,000 crore) inflows into domestic equities.
India has a weightage of 5.3 per cent, seventh-most in the new MSCI ACWI IMI ex USA ex China ex Hong Index, which FRTIB now plans to use.
India isn t part of the current developed markets-dominated MSCI EAFE index that the pension fund uses.