JPMorgan has added India to its widely tracked Government Bond Index-Emerging Markets (GBI-EM) index, benchmarked by about $236 billion in global funds.
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Higher inflows
Inflows of around $24 billion expected by May 2025, with possible additional inflows of $15-20 billion if India is included in the Bloomberg Global Aggregate Bonds Index.
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Huge inclusion
A total of 23 Indian Government Bonds (IGBs) worth a staggering $330 billion will be eligible for inclusion.
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India's GBI-EM weightage
India's weightage could reach 10% in the GBI-EM Global Diversified index and about 8.7% in the GBI-EM Global index.
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Rupee boost expected
The inclusion is seen as a substantial positive for the rupee, although analysts caution that the full impact of these inflows may take some months to materialize.