{"id":3419,"date":"2021-11-17T11:09:01","date_gmt":"2021-11-17T11:09:01","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=3419"},"modified":"2026-04-09T10:00:41","modified_gmt":"2026-04-09T10:00:41","slug":"a-moment-of-pride-for-the-indian-bond-market-inclusion-of-indian-bonds-in-the-global-bond-indices","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/market-view\/a-moment-of-pride-for-the-indian-bond-market-inclusion-of-indian-bonds-in-the-global-bond-indices\/","title":{"rendered":"A Moment of Pride for the Indian Bond Market \u2013 Inclusion of Indian Bonds in the Global Bond Indices"},"content":{"rendered":"

India, one of the world’s fastest-growing economies –\u00a0 not just in terms of development but also as the second largest populated nation, <\/span>has been lobbying hard with the large global bond<\/a> indices to include Indian government bonds, particularly Government Securities (GSecs) in Global indices.<\/span> According to a report published by Morgan Stanley, <\/span>India\u2019s government bonds are likely to gain inclusion in 2 global indices in 2022. <\/span>JMP GBI-EM Global Diversified Index<\/b> and <\/span>Bloomberg Global Aggregate Index<\/b> are the ones that will include Indian government bonds<\/a>.<\/span><\/p>\n

In this report, we are going to discuss the various impacts and implications of this inclusion on different sets of bodies, as well as will be talking about a few suggestions that can be implemented to make the situation more favorable.<\/span><\/p>\n

\u00a0When compared with global Equity indices, India has a significant contribution thereby accounting for $655 billion in Foreign Portfolio Investment account. However, the number of Indian Government bond ownership by Foreign Portfolio Investors is just about $19 billion. <\/span>\u00a0In percentage terms, foreign ownership of Indian sovereign debt is 1.9% which is extremely low for an economy <\/span>with a GDP of $2.75 trillion and market capitalization of $3.40 trillion<\/span>.<\/span><\/p>\n

\"Ownership<\/p>\n

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Source- RBI<\/span><\/p>\n

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