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"The change will take effect in June 2024, and India will have a maximum weight of 10% in the index. Maximum weight could be reached by March 2025.

This has been a long awaited measure and could be a significant boost for Indian Debt markets.

- Could act as a catalyst for much-needed bond market deepening.
- In the medium to long term, enhanced foreign participation could result in reduced yields on government bonds.
- That, in turn, may gradually (medium/long term) reduce the yields on corporate bonds too.
- Which in turn, could lead to reduction in cost of capital & cost of borrowing over the long-term.
- Could have a positive impact on our currency in the medium to long run."

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