Shantanu Bhargava, Waterfield Advisors on JP Morgan announcement inclusion of Indian Govt Bonds in the JP's Emerging Market Global Bond Index

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.