Rapid Fire
Indian Bonds Join FTSE Index
- 28 Oct 2024
- 2 min read
Recently, FTSE (Financial Times Stock Exchange) Russell announced that it will add India's sovereign bonds to its Emerging Markets Government Bond Index (EMGBI) in September 2025.
- About:
- FTSE Russell (a leading global index provider), has become the third organization to include Indian bonds in its emerging market bond index, following JPMorgan and Bloomberg.
- The EMGBI tracks local currency government bond performance from 16 countries, serving as a broad benchmark for portfolio managers.
- FTSE Russell (a leading global index provider), has become the third organization to include Indian bonds in its emerging market bond index, following JPMorgan and Bloomberg.
- India’s Representation:
- Indian government bonds, after being on FTSE's watch list for three years, will now represent 9.35% of the EMGBI.
- Impact on India’s Bond Market:
- This inclusion could inject billions into India’s bond market, increasing demand for Indian bonds and enhancing investor sentiment.
- Indian bonds have attracted approximately USD 18.5 billion in foreign inflows, indicating growing global interest.
- Government Bonds:
- It is a tradable debt instrument issued by the Central or State Governments.
- It is used by the government to borrow money from the public to finance its fiscal deficit.
Read More: India's Inclusion in JPMorgan GBI-EM Index
