- In a bid to lure more investors into its government debt, India is lobbying JPMorgan to include its paper in the bank's Government Bond Emerging Markets Global Diversified Index, which is tracked by funds with more than $200B in AUM.
- "A game changer" if it happens says Standard Chartered, noting a weighting of 10% could lead foreign investors to buy $20B-$40B worth of government bonds. First, however, the country would need to remove a $30B cap on foreign investment in Indian debt. Foreign holdings of Indian government bonds make up just 2% of the $150B outstanding, according to Morgan Stanley.
- Inclusion in the index isn't likely for another few months, says Morgan, and it would be a gradual process drawing out over nearly another year and a half.
- India ETFs: INDY, EPI, PIN, INP, INDA, INXX, SCIF, SCIN, INDL, SMIN, ICN, INR.