The announcement of India’s inclusion, starting June 28, 2024, in JP Morgan’s widely tracked Government Bond Index-Emerging Markets (GBI-EM) is a milestone event. India’s inclusion is yet another shining example of India’s growing importance in the world economy. Similarly, India is on the watchlist of FTSE Russell’s Emerging Markets Global Bond Index. The Reserve Bank of India has been engaging with the above-mentioned index providers for the inclusion of Indian Government Bonds in the global bond indices. Furthermore, RBI’s July 2023 Report of the Inter-Departmental Group on Internationalisation of INR has underlined that the benefits of index inclusion outweigh the associated risks linked to such index inclusion, like increased sensitivity of domestic policy to external spill overs.

Source: Indian Express October 23, 2023 16:05 UTC