Having worked towards participating in the global bond index since 2019, India is confident that it will be included in the next six months, according to a Reuters report citing two senior sources aware of the discussions.
The move would help the country bring down borrowing costs, which have risen in recent weeks due to a lack of appetite amid high supply, one of the sources said.
“The indices will be review in September,” one source said. “We have dealt with most of [one index provider’s] concerns, we should be able to resolve the other issues too.”
The Indian government plans to issue bonds worth $165bn (£118.6bn, €138.3bn) to fund its spending programme.
Despite its anticipated inclusion, the actual listing could take a further 12 months – meaning the money will likely not be raised before October 2022.
According to Reuters, long-held restrictions on foreign buying of Indian bonds have kept it out of the top benchmarks used by global money managers and an inclusion could be a landmark change.
