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JP 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, reports Xinhua citing a statement issued by JP Morgan.
"India is expected to reach the maximum weight of 10 per cent in the GBI-EM Global Diversified Index (GBI-EM GD). Currently, 23 Indian Government Bonds (IGBs) with a combined notional value of 330 billion US dollars 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 1.0 per cent weight per month.
The move is expected to drive billions of dollars of foreign inflows into India's economy.