What could India's inclusion into major global bond indices mean?

The possibility of India being included in global bond indexes this year has led to increased buying in a set of local securities.

A decision on whether to include the south Asian country into the J.P.Morgan Government Bond Index-Emerging Markets (GBI-EM) could come as early as this month when the operators meet to review the composition of the index.

Morgan Stanley and Goldman Sachs expect India to be included in the index by 2023, with a 10% weightage, if an initial announcement is made this year.

Meanwhile, Barclays said India could also possibly be added to the Bloomberg Global Aggregate bond index.

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