Bond with Bharat: What activation of J P Morgan Index means for India Inc

While inflows into G-Secs is a given, the secondary effects of these in the corporate bond market are to be watched for

“The inclusion of government bonds in the J P Morgan Bond Index is a vote of confidence about the Indian economy and financial markets,” said Reserve Bank of India Governor (RBI) Shaktikanta Das at the Business Standard BFSI Insight Summit on October 31, 2023 in Mumbai. Come June, and the Index will be activated with 23 Government of India securities or G-Secs. It could result in portfolio inflows of at least $18-22 billion through June-March FY25. (Bloomberg has also launched consultation to do the same in its Emerging Market Indices from September 2024).

Last Thursday, Mint Road did not cut its