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JPMorgan Chase & Co. will add Indian government bonds to its main emerging markets indices. This step may lead to a significant inflow of investments into the Indian public debt market. According to the company's official statement, Indian bonds will be included in the Government Bond Index-Emerging Markets (GBI-EM) starting from June 28, 2024. In total, 23 issues of Indian government bonds totaling $330 billion will be included in the index. The share of Indian bonds in these indices will not exceed 10%, and the inclusion process will take about 10 months. «India's share is expected to be 10% in the GBI-EM Global Diversified index and about 8.7% in the GBI-EM Global index,» JPMorgan reports. Economists believe that after the inclusion of Indian bonds in JPMorgan indices, the inflow of investments can reach from $25 to $26 billion. Since the beginning of 2023, foreign investors have bought $3.4 billion worth of Indian government bonds. Nevertheless, their share in the total volume of these bonds is less than 2%. In addition, another major index provider, FTSE Russell, is also considering adding India to its emerging markets indexes.
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