New Delhi [India], September 22 (ANI): In a significant development that could pull in foreign funds into India's debt market JPMorgan ChaseCo will add Indian government bonds to its benchmark emerging-market index starting June 28 in 2024.

The inclusion of the index follows the Indian government's introduction of the "FAR program in 2020 and substantive market reforms for aiding foreign portfolio investments," the American multinational investment bank JP Morgan said in a statement on Thursday.

The inclusion of Indian government bonds in the JPMorgan Government Bond Index-Emerging Markets index could be seen as yet another sign of its growing appeal to global investors as it continues to remain one of the fastest-growing major economies.

This development holds significance particularly as various global manufacturing behemoths are looking at India to set up shop as part of their China1 diversification strategy in a post-pandemic world order.

JP Morgan on Thursday said India is expected to have a maximum 10 per cent weightage in its Government Bond Index-Emerging Markets.

"Inclusion of the IGBs will be staggered over a 10-month period starting June 28, 2024, through March 31, 2025 (i.e., inclusion of 1 per cent weight per month)," JP Morgan added.

Currently, as many as 23 Indian government bonds with a combined notional value of USD 330 billion are index-eligible.

Foreign investors are already making a beeline to place their bets in India's equity markets. Since March through August, foreign portfolio investors have remained net buyers in Indian stock markets. In September, however, the quantum of fund inflow had slowed and remained on the negative side.

So far in 2023, foreign investors have cumulatively put Rs 126,998 crore into the Indian stock markets. India's strong economic outlook, as forecast by various global agencies, seemed to have led to a renewed appetite for domestic stocks. (ANI)