NEW DELHI: JP Morgan has said that it will include India in its Government Bond Index-Emerging Markets (GBI-EM) index from June 2024 onwards.
This will help in increasing inflows into the world's fifth-largest economy.
It will also mean that local government bonds will be included in the GBI-EM index and the index suite, which is benchmarked by approximately $236 billion in global funds, as per JP Morgan.
"India's weight is expected to reach the maximum weight threshold of 10 per cent in the GBI-EM Global Diversified, and approximately 8.7 per cent in the GBI-EM Global index," said JP Morgan.
This index is followed by global funds, with approximately $236 billion in assets benchmarked against it.