Achievement: JP Morgan will add India to the benchmark index of emerging markets, you will get this benefit

JPMorgan Chase & Co will add Indian government bonds to its emerging markets benchmark index. This is a curious decision which was awaited for a long time. This decision could increase foreign inflows of billions into the country’s debt market.

The decision is the latest sign of India’s growing appeal to international investors as the country’s economic growth outpaces competitors. Its geopolitical influence is growing and global companies including Apple are looking for alternatives to China. Although foreigners play a small role in the Indian bond market, flows have been increasing in recent years and the country’s assets have proven resilient to the financial turmoil that has troubled other developing countries.

The index provider will add Indian securities to the JPMorgan Government Bond Index-Emerging Markets from June 28, 2024. The South Asian nation will have a maximum weighting of 10% in the index, according to a statement.

The inclusion of Indian government bonds in the JPMorgan Government Bond Index-Emerging Markets Index can be seen as another sign of India’s growing appeal to global investors as it continues to be one of the fastest growing major economies. Has happened. This development is particularly significant as various global manufacturing giants are looking towards India to set up business as part of their China+1 diversification strategy in the post-pandemic world order.

JPMorgan said India is expected to have a maximum weighting of 10 per cent in its government bond index-emerging markets. “IGBs will be inducted over a 10-month period from June 28, 2024 to March 31, 2025 (i.e., 1 percent weighting will be inducted per month),” JPMorgan said.