Published: 16:42, September 22, 2023 | Updated: 16:42, September 22, 2023
J.P. Morgan to include India in its emerging markets bond index
By Reuters

In this June 29, 2021 file photo, the logo of J.P. Morgan bank is pictured at the new French headquarters of J.P. Morgan bank in Paris. (PHOTO / POOL / AP)

NEW DELHI - J.P. Morgan said it will include Indian government bonds in its widely tracked emerging market debt index from next year.

India will be included in the GBI-EM (Government Bond Index-Emerging Markets) Global Index suite starting June 28, 2024, according to a statement issued by J.P. Morgan.

The inclusion of IGBs will be staggered over a 10-month period starting June 28, 2024, through March 31, 2025, with an inclusion of 1 percent weight per month

"India is expected to reach the maximum weight of 10 percent in the GBI-EM Global Diversified Index (GBI-EM GD). Currently, 23 Indian Government Bonds with a combined notional value of $330 billion are index eligible," the statement said.

The inclusion of IGBs will be staggered over a 10-month period starting June 28, 2024, through March 31, 2025, with an inclusion of 1 percent weight per month.

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The move is expected to drive billions of dollars of foreign inflows into India's economy.