How India wins by entering global debt indexes: Standard Chartered Bank

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The bank said the move would help the rupee and the debt market while also easing balance of payments concerns.

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It will result in foreign fund outflows from Turkey,Indonesia,Thailand and Hungary,they added. Standard Chartered expects India to have around 10 per cent weight in the index eventually,though it may be assigned a lower weightage in the beginning.

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The investment bank says Indian policymakers’ belief that high foreign ownership would lead to elevated bond-market volatility may be unfounded as research across 14 EM countries shows only a weak relationship between these two factors.

The bank expects India’s inclusion to firstly help bond markets by bringing in inflows from a wider investor base,deepen the market,and boost the rupee while also helping the economy at large.