India entry in global bond indices may lead to $40-billion inflows: Standard Chartered

NEW DELHI: India may attract foreign inflows of $20-40 billion over a year if the country is included in leading government bond indices, says a report by Standard Chartered.

FII investment cap excludes India from popular indices. Global asset managers, pension funds, mutual funds, and central banks use bond indices while making asset allocation.

According to the research note by Standard Chartered, India’s inclusion in popular government bond indices could be positive for the country and negative for the government bonds of Turkey, Indonesia, Thailand and Hungary.