The inclusion of India’s local in JPMorgan’s Government Bond Index-Emerging Markets will set the stage for billions of dollars of inflows into the world’s fifth-largest economy. – AFPpicJPMorgan said on Friday it will include India in its widely tracked emerging market debt index, setting the stage for billions of dollars of inflows into the world’s fifth-largest economy.
“India’s weight is expected to reach the maximum weight threshold of 10% in the GBI-EM Global Diversified, and approximately 8.7% in the GBI-EM Global index,” said JPMorgan. It removed foreign investment restrictions on some government securities in 2020 as part of an effort to enter global bond indices. Several bonds are now part of the “Fully Accessible Route” and do not have foreign investment restrictions.