FTSE puts Indian govt bonds on watch for possible index inclusion

The FTSE announcement is an acknowledgment of India's efforts to liberalize its sovereign bond market

FTSE Russell has placed Indian government bonds on the watchlist for possible inclusion in one of its major global debt indexes, a move that may usher billions of dollars of inflows into the securities.

Indian bonds will be considered for addition to the FTSE Emerging Markets Government Bond Index and their market accessibility will be reviewed for reclassification to “1” from “0,” which would put them at the minimum level needed for inclusion, the index provider said. The announcement was part of FTSE’s semi-annual country classification review released Monday.

The announcement will help “ensure greater investment in debt markets and longer term,