JPMorgan index inclusion shows confidence in India's economy: Ajay Seth

India's inclusion in the JPMorgan emerging market debt index shows their confidence in the Indian economy, the country's economic affairs secretary Ajay Seth told reporters on Friday.

India's local bonds will be included in the Government Bond Index-Emerging Markets (GBI-EM) index and the index suite, benchmarked by about $236 billion in global funds, JPMorgan said earlier in the day.

Inclusion will start on June 28, 2024, and extend over 10 months, with 1% increments on its index weighting, as India is expected to reach the maximum weighting of 10%, it added.

"It is a welcome development and shows confidence in the economy," Seth told reporters.

A government official who declined to be named said the inclusion happened without providing any tax incentives as was requested.