Statsguru: India's index inclusion may bring capital into the country

Since May 2024, foreign investors have been net buyers in the debt market, even as they have been net sellers in the equity market over the last two months

India’s inclusion in JP Morgan’s emerging market bond index, starting this week, is expected to bring capital into the country. Funds worth over $200 billion in assets track the index and are expected to result in over $20 billion flows into the country. During the inclusion period, 1 per cent weight will be added each month, starting June 28 and phased over 10 months, until March 31, 2025. Indian bonds, along with Chinese, Indonesian and Mexican bonds will have a 10 per cent weighting (chart 1).

Since May 2024, foreign investors have been net