Inclusion in this global benchmark is a major win for India, as it attracts a significant pool of global capital for bond allocations, leading to increased foreign exchange inflows.
The index provider will add Indian securities to the JPMorgan Government Bond Index-Emerging Markets starting June 28, 2024. The South Asian nation will have a maximum weight of 10% on the index, according to a statement Thursday.
ASIAN bonds recorded net foreign inflows for a fifth straight month in July, helped by expectations that the U.S. Federal Reserve's monetary tightening cycle is nearing the end as price pressures show signs of easing.
India has been the best performing market since March 2023, with FTSE India index jumping 16.7 per cent in dollar terms, led by $21 billion in foreign flows, supported by strong earnings outlook and relatively stable macro conditions.