Das said both RBI as well as the government are speaking with major index providers globally for such an entry.
JPMorgan's influential GBI-EM and Global Aggregate indices are likely to include India in early 2022, Morgan Stanley's analysts said
An entry into some of these indices is expected to generate an additional $20 billion of foreign investment into the economy
The govt needs to examine its options to join global central securities depositories without ceding tax sovereignty. This could considerably delay India becoming a part of global bond indices.
Fund managers want govt to freeze taxes on sovereign debt papers
The inclusion will start in October 2021, according to a statement after US markets closed Thursday.
Existing limit for FPI investment in G-secs is 6% of the outstanding stocks of securities; govt may announce increase to 10% in Union Budget 2020
According to experts, the foreign holding cap imposed by the RBI in public debt has deterred inclusion of the country in such indices
ond traders say in India, where 95% of the bonds are placed privately, the index would hardly serve any purpose