“India’s Markets Are Turning Into an Inexorable Force”, Bloomberg, January 15, 2024:
“Anyone wondering whether the India juggernaut is sustainable will find the answer in bonds, which have a penchant for discerning the way of the world and telling every other market what to do. At least $1 trillion of government securities traded multiple times annually in the most populous nation and biggest democracy are poised to become the darling of international investors when India this year joins the benchmark for emerging-market debt compiled by JPMorgan Chase & Co.
India’s entry following Russia’s exclusion after Vladimir Putin’s 2022 invasion of Ukraine (and 2014 seizure of Crimea) and when China’s sovereign debt is losing its luster, will make Asia’s third-largest economy a beneficiary of as much as $40 billion of inflows during the next 18 months, according to Goldman Sachs Group Inc. How big a deal is that?
Consider that foreigners, who are currently prohibited from owning more than 6% of India’s sovereign debt, held as little as 0.4% last March, paltry by any measure of major developing countries……”
Read the full article at Bloomberg.com
