Goldman Sachs sees India bonds getting added to JP Morgan index in 2023

The development is expected to trigger passive inflows of about $30 bn that will help the country finance its current account and fiscal deficits

Indian government bonds may be added to a global index next year, triggering passive inflows of about $30 billion that will help the country to finance its current account and fiscal deficits, according to Goldman Sachs Group Inc.

The nation’s sovereign bonds may be added to JPMorgan’s GBI-EM Global Diversified bond index with an initial 10% weightage, analysts Danny Suwanapruti and Santanu Sengupta wrote in a note to clients. India’s $1 trillion sovereign bond market is one of the biggest among emerging markets not to be part of any global index.

Goldman’s optimism comes even as the index inclusion has