India gets green light to join JPMorgan bond index; rupee, bonds gain | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
July 24, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JULY 24, 2025
India gets green light to join JPMorgan bond index; rupee, bonds gain

South Asia

Reuters
22 September, 2023, 04:00 pm
Last modified: 22 September, 2023, 04:05 pm

Related News

  • Milestone crash: Indian medical team arrives in Dhaka
  • India to resume issuing tourist visas to Chinese citizens
  • Milestone plane crash: Bangladesh’s global friends mourn, offer support
  • A dissection of rising hostility against Bengali migrants across India
  • In India's deportation drive, Muslim men recount being tossed into the sea

India gets green light to join JPMorgan bond index; rupee, bonds gain

India's local bonds will be included in the Government Bond Index-Emerging Markets (GBI-EM) index and the index suite, benchmarked by about $236 billion in global funds, JPMorgan said in a release on Friday.

Reuters
22 September, 2023, 04:00 pm
Last modified: 22 September, 2023, 04:05 pm
An India Rupee note is seen in this illustration photo on 1 June 2017. Photo: REUTERS/Thomas White
An India Rupee note is seen in this illustration photo on 1 June 2017. Photo: REUTERS/Thomas White

JPMorgan will include India in its widely tracked emerging market debt index, setting the stage for billions of dollars of inflows into the world's fifth-largest economy and helping it finance its current account and fiscal deficits.

India's local bonds will be included in the Government Bond Index-Emerging Markets (GBI-EM) index and the index suite, benchmarked by about $236 billion in global funds, JPMorgan said in a release on Friday.

JPMorgan said 23 Indian Government Bonds (IGBs) with a combined notional value of $330 billion, all of which fall under the "fully accessible route" for non-residents are eligible.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

"India's weight is expected to reach the maximum weight threshold of 10% in the GBI-EM Global Diversified, and approximately 8.7% in the GBI-EM Global index," said JPMorgan.

India's benchmark 10-year bond yield dropped 7 basis points to a two-month low of 7.0788% in opening trade but retreated to 7.12% by 0700 GMT, while the rupee gained 0.3% early to 82.25 per dollar before giving up some gains to trade at 82.93.

"We welcome this development," said India's chief economic adviser V. Anantha Nageswaran.

"It attests to the confidence that financial market participants and financial markets, in general, have on India's potential and growth prospects and its macroeconomic and fiscal policies," he added.

Inclusion will start on June 28, 2024, and extend over 10 months with 1% increments on its index weighting, as India is expected to reach the maximum weighting of 10%, JPMorgan said.

"Beyond the near-term euphoria, this should structurally augur well for rates and FX markets, leading to lower cost of borrowings for the economy at large and more accountable fiscal policy-making," said Madhavi Arora, lead economist at Emkay Global Financial Services.

However, India's inclusion will trigger outflows elsewhere, with weightings for domestic government bonds issued by other countries set to shrink: Thailand will see the biggest losses at 1.65 percentage points, while South Africa, Poland, Czech Republic and Brazil will see theirs cut by 1-1.36 percentage points, according to JPMorgan.

Talks began in 2019

India began talks on including its debt in global indexes in 2019, while also talking to Euroclear about clearing and settlement.

It removed foreign investment restrictions on some government securities in 2020 as part of an effort to enter global bond indexes with several bonds now part of the "Fully Accessible Route" without any foreign investment restrictions.

But the government's stance on other issues including capital gains taxes and local settlement delayed its inclusion, though it did not actually budge on its stand.

"It would be reasonable to expect inflows to start from now, which in the interim helps even the demand-supply gap in balance of payments," said Rahul Bajoria, managing director and head of EM Asia (ex China) at Barclays.

"We believe a total of $20-25 billion should come in over the index inclusion horizon, but some front loading is reasonable."

Foreign investor buying in Indian bonds has remained tepid with net purchases of $3.4 billion so far in 2023. Foreign investors own less than 2% of outstanding government debt.

"This announcement is a significant positive for the INR bond in the short-term as investors look to front-run the eventual inclusion," said analysts at DBS in a note on Friday.

In the same announcement, JPMorgan said Egypt's eligibility in the GBI-EM series will be on review for three to six months, due to reports of "material" hurdles in currency repatriation.

"If the hurdles cited by benchmarked investors persist, a status review will be triggered for Egypt's removal from the GBI-EM series," JPMorgan said.

Egypt will remain in the index during the review.

Top News / World+Biz

Bond / JP Morgan / India

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • BB asks female staff to wear 'modest' attire, discourages short-sleeved or length dresses, leggings
    BB asks female staff to wear 'modest' attire, discourages short-sleeved or length dresses, leggings
  • Govt amends public service rules further, adding appeal rights, forced retirement
    Govt amends public service rules further, adding appeal rights, forced retirement
  • Chief Adviser Muhammad Yunus held a meeting with leaders of 13 political parties at the state guest house Jamuna today (23 July). Photo: Focus Bangla
    13 political parties urge CA to announce specific election date

MOST VIEWED

  • Photo: Collected
    Bangladeshi man jailed for life in UK for murdering wife in front of their baby
  • Ctg port authority halts contractor recruitment for Kamalapur ICD operations for two months
    Ctg port authority halts contractor recruitment for Kamalapur ICD operations for two months
  • Fire at Cosmo School in Mirpur on 23 July 2025. Photo: TBS
    Fire breaks out at Cosmo School in Mirpur following generator explosion
  • Representational image. File Photo: Rajib Dhar/TBS
    Debate arises as edu adviser says postponed HSC exams of 22 and 24 July will be held on same day
  • The Government Seal of Bangladesh
    Govt mulls allowing trade unions with 20 workers, industry leaders warn of disorder
  • Photo: CA Press Wing
    Stronger stance needed on maintaining law and order: Political parties to CA

Related News

  • Milestone crash: Indian medical team arrives in Dhaka
  • India to resume issuing tourist visas to Chinese citizens
  • Milestone plane crash: Bangladesh’s global friends mourn, offer support
  • A dissection of rising hostility against Bengali migrants across India
  • In India's deportation drive, Muslim men recount being tossed into the sea

Features

Photo: Collected

24 July: More than 1400 arrested, 3 missing coordinators found

1d | Panorama
Photo: Mehedi Hasan/TBS

Aggrieved nation left with questions as citizens rally to help at burn institute

1d | Panorama
Photo: TBS

Mourning turns into outrage as Milestone students seek truth and justice

1d | Panorama
Illustration: TBS

Uttara, Jatrabari, Savar and more: The killing fields that ran red with July martyrs’ blood

2d | Panorama

More Videos from TBS

ISPR reports 31 dead, official tally 29

ISPR reports 31 dead, official tally 29

2h | TBS Today
13 political parties meet with chief advisor; urge to announce election date

13 political parties meet with chief advisor; urge to announce election date

2h | TBS Today
Bangladesh and Pakistan unite to fight drugs

Bangladesh and Pakistan unite to fight drugs

3h | TBS Today
Case Study of Milestone Tragedy

Case Study of Milestone Tragedy

4h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net