The math of index inclusion

The math of index inclusion flows depends mainly on the global fixed income benchmarks that could consider India eligible for inclusion; and, the scale/mode of issuance of the new "special securities"

The case for a capital-deficit emerging market economy like India to dip into the global savings pool to fund its investment needs is rather obvious. You cannot, however, always choose the quality of money you get. The relatively incremental approach over the years from Indian policymakers towards global debt portfolio capital has reflected their concerns about the potential for such flows to engender volatility in asset prices. That the government has announced in the recent Budget its intention of having its bonds listed on global debt benchmarks is, in that context, a significant and welcome step forward. It is arguably