The decision to include Indian government bonds in two prominent global indexes recently is being viewed as a shot in the arm for the rapidly growing country and is expected to bring in billions of inflows. India’s bonds will be added to the JPMorgan Government Bond Index-Emerging Markets (GBI-EM) in June, the Wall Street lender announced in September. Goldman Sachs said it expects India’s bond markets to see inflows “upwards of $40 billion from the time of announcement to the end of the scale-in period, or around $2 billion per month.” The biggest buyers of India’s government debt have so far been institutional organizations such as banks, mutual funds and insurance firms but addition to global indexes means it could now diversify the country’s avenues to raise funds. An undated editorial illustration of the Indian rupee and the Indian flag. Anand Purohit | Moment | Getty Images
The decision to include Indian government bonds in two prominent global indexes recently is being viewed as a shot in the arm for the rapidly growing country and is