The Strategist

Goldman expects $40bn inflows into India bonds after inclusion in JPMorgan indices



09/25/2023 - 03:46



According to experts at Goldman Sachs, the inclusion of Indian government bonds in the important developing market government debt indices by JPMorgan Chase & Co. will result in a $ 40 billion increase in investor capital.



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Passive inflow will be around $30 billion and active inflow will be around $10 billion over the next 18 months. Indian government bonds are appealing because they offer high returns with relatively low volatility, according to Goldman Sachs.

JPMorgan announced that Indian government bonds will be a part of the GBI-EM family of indexes starting on June 28, 2024. The indexes will contain a total of 23 issuance of Indian government bonds with a face value of $330 billion.

Foreign investors have bought $3.4bn worth of Indian government bonds since the beginning of 2023. Less than 2% of the outstanding Indian government bonds are owned by foreigners.

source: bloomberg.com