India may take Russia's place in global bond indices

Major banks are planning to include Indian bonds in global indices, and one of the reasons for this is the exclusion of Russia.

Morgan Stanley plans to announce in mid-September that India will join the JPMorgan Chase & Co Bond Markets Index of countries, RBC-Ukraine reports with reference to Bloomberg.

India has the largest bond market among emerging economies, which is not covered by global indices.
Goldman Sachs Group expects a similar announcement to be made in the fourth quarter of this year, with inclusion in the second or third quarter of 2023. Both banks will count on a 10% share of India. They estimate the flow of potential investments at $30 billion.

Indian sovereign bonds have high yields and inclusion in global indices will make investment easier for overseas investors. The exclusion of Russia from these indexes after the start of the war in Ukraine can contribute to progress now.

Russia has lost the ability to fulfil its obligations under Eurobonds in foreign currency after the United States did not renew the required license.