India set to see billions in inflows as government bonds debut on JPMorgan’s debt index

India is set to see billions in inflows into the country’s rupee-denominated government debt market, as state bonds make their debut on JPMorgan’s emerging market index on Friday.

This is reportedly the first time Indian government bonds have been included in a global index.

India has seen foreign inflows to the tune of about $10 billion into its bond market over the past nine months since the announcement, Puneet Pal, head of fixed income at PGIM India Mutual Fund, told CNBC “Street Signs Asia.”

Last September, JPMorgan said the inclusion of Indian bonds in its Government Bond Index-Emerging Markets will be staggered over 10 months, starting from a 1% weightage in June to a maximum 10% in April next year.

Deepak Agrawal, chief investment officer of debt at Kotak Mutual Fund, told CNBC earlier this year that he expected the inclusion to generate “stable flows of around $25 [billion] to $30 billion” over the next 12 to 18 months following the rebalancing period starting in June 2024.

Source: CNBC