Bloomberg proposes to include Indian bonds in Emerging Market Local Currency Index

Bloomberg has proposed to roll out India bonds from September 2024.

It has proposed a 10 percent weight for India bonds. The index would include 32 Indian securities, NDTV reported.

Mataprasad Pandey, vice president of Arete Capital Service Pvt said as quoted by NDTV, " This will help reduce government's borrowing and this is of great importance at this hour during the election year where we may see the higher borrowings and such incremental supply can be well-absorbed by such increased demand."

With the inclusion, the Indian rupee will become the third largest currency.

Bloomberg Index Services has sought a reply by January 25.