JP Morgan’s move will give India push for further growth: report
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New York: India’s economic growth is likely to get further boost after JPMorgan Chase & Co has decided to add Indian government bonds to its benchmark emerging-market index.
The decision by American multinational bank and financial services firm could drive billions of foreign inflows to India’s debt marker, according to Bloomberg.
The report suggests India’s increasing clout internationally in terms of financial growth and geopolitical importance.
Over the past several months global companies including Apple Inc. have turned to India for a potential alternative to China.
Indian economy successfully weathered global financial turbulence post the Covid scenario which brought in crippling inflation in many countries.
India’s assets showed no fluctuations, remaining ‘resilient’, according to the report.
Beginning with June 28, 2024, Indian securities will be added to the JPMorgan Government Bond Index-Emerging Markets.
India will get a maximum weight of 10 percent on the index, it was reported on Thursday.
It is reported that nearly three quarters of the benchmark investors supported India’s inclusion in to the index.
India’s achievement comes at a time when China is struggling with its slowing economy, and spiraling unemployment among youths.
Global investors were reportedly frustrated over China’s increasing economic woes.
The slump in global economic scenario including the situation in the developed countries made India the only bright spot.
Bloomberg reported that foreign investors this year brought $3.5 billion worth of Indian government debt.
The fast-growing economy and solid corporate earnings made India one of the top investment destinations globally this year.
Emphasizing India’s growth trajectory further, Charu Chanana, a strategist at Saxo Markets in Singapore, said ‘With inflation coming under control, the inclusion will open more gates for foreign capital to flow into India’.