Policy challenges of India's trek to bond indices

If the volatility in the financial market continues for a prolonged period, it could also result in important implications for asset prices

India seems to be taking the first steps towards integrating itself with the global bond indices. Understandably, there is palpable excitement in the financial markets, given the large upside it could result in terms of capital flows. Yet, it is pertinent to get a complete picture of the impact analysis. This will be useful for both the Reserve Bank of India (RBI) and the government in formulating policies. Interestingly, the news of coronavirus and the release of gross domestic product (GDP) data have made such policy construct more challenging. 

It was in 2013, when India was in the throes of