Rss Feed Inclusion of Indian bonds in JP Morgan index to widen investor base, may boost rupee: V. Anantha Nageswaran
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Chief Economic Advisor (CEA) V Anantha Nageswaran has said inclusion of Indian government bonds into JP Morgan’s benchmark emerging market index from next year will widen investor base, and may lead to appreciation of rupee. He also said there is potential for currency appreciation following inclusion of Indian bonds in JP Morgan index.
Global financial firm JP Morgan has said that it plans to include Indian government bonds or government securities (G-Secs) into its benchmark emerging market index from June, 2024, a move that will bring down borrowing cost for the government. The inclusion of G-Secs will be staggered over a 10-month period from June 28, 2024 to March 31, 2025, indicating one per cent increment on its index weight.
Nageswaran stated ‘Obviously, the investor base for Indian government bonds widens and it will also in a way, relieve the Indian financial institutions from having to be one of the biggest buyers or subscribers of government bonds and they can actually then lend that money for more productive purposes to private sector, the commercial sector individuals etc.’
