Search ForexCrunch

The measures taken by Indian Prime Minister Narendra Modi in opening the sovereign debt market to foreigners could soon pave the way for the inclusion of Indian bonds in major global bond indices, JPMorgan’s Index Research Team said in an email this week.

Key quote (source: Bloomberg)

India is making progress toward opening up its market to foreign investors and establishing a track record for future inclusion in major bond indices, including the GBI-EM Global Diversified Index.

About $115 billion in notional value of current and upcoming government debt have been marked for accessibility,

Measures to earmark bonds as fully accessible to international investors could eventually pave the way for benchmark eligibility. For now, India remains off-index and under review for inclusion. 

The Indian government is scheduled to borrow an unprecedented 12 trillion rupees ($163 billion) this fiscal year. The inclusion of government bonds in global indices would drive billions of dollars of inflows into the nation’s debt market.