10 Sep , 2021 By : monika singh
Morgan Stanley on Thursday said that India is likely to be included in global bond indices by the first quarter of 2022. According to the banking company, the move could attract USD 170 billion to USD 250 billion in bond inflows in the next decade in the base/bull scenario. The firm added that the move could have positive implications for the economy, forex, bond yields and equity markets. Morgan Stanley made the comments in a research report titled 'EM Strategy -- The Transformation of India's Bond Flows'.
Foreign ownership of Indian government bonds (IGBs) has been declining, but 2022 would be the turning point that could bring an acceleration of bond inflows,' Morgan Stanley said in its note. India has been keen to be included in global bond indices since 2019. The attitude change in the country has been visible in its moves as rising government borrowing, and a desire to push investment rates higher placed the need to open up the domestic bond market. The country now needs a more extensive investor base.
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