In a significant development for the Indian economy, Finance Minister Nirmala Sitharaman announced on Thursday that the country has been included in JP Morgan’s Government Bond Index-Emerging Markets (GBI-EM) from June 28, 2023. This inclusion is expected to stimulate a substantial $23 billion forex inflow.
The minister revealed that 23 Indian bonds under the Fully Accessible Route (FAR) contribute to a 10% weightage in the GBI-EM Global Diversified. The entry into this prestigious index reflects the strength and stability of India's financial system and its increasing attractiveness to global investors.
Sitharaman also pointed out the country's impressive foreign direct investment (FDI) performance. Over the course of nine years, India has attracted $595.25 billion in FDI inflows, a testament to its stable policies and favorable macroeconomic conditions.
Furthermore, she emphasized the implementation of the 'Nudge Theory' in various government schemes such as PM SVANidhi, Beti Bachao, Beti Padhao, Stand-up India loans for women, and PM Vishwakarma Yojana. These initiatives align with the Prime Minister's empowerment principle and aim to foster economic inclusivity and social equity.
This announcement marks a significant milestone for India as it continues to strengthen its position in global financial markets. The inclusion in JP Morgan’s GBI-EM is expected to attract further international investment and contribute positively to the country's overall economic health.
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