Indian Government bonds to be included in JP Morgan's Emerging Ma...

JP Morgan has announced that it will include around 24 Indian government bonds in JP Morgan's Emerging Markets Government Bonds index, from June next year. This inclusion will result in more inflows of foreign investment in Indian government bonds. Cost of borrowing for the Indian government (interest rate that it pays on its bonds) may go down because of this. If the interest rate that the government pays on its borrowing goes down, then  it may also lower the interest rates that Indian companies pay on their borrowings. This may in turn lower the interest rate that individual borrowers in India pay on their loans. 

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