The value of currency is expected to increase after inclusion of Indian bonds in the JPMorgan index.
JPMorgan, a global financial firm, has announced that it will include Indian government bonds or government securities as its benchmark emerging market index from June, 2024, a move that will bring down borrowing costs for the government.
The inclusion of G-Secs will be staggered over a 10-month period from June 28, 2024 to March 31, 2025, indicating one percent increase in its index weight.
Narendra Modi, a minister of finance, said the minister had not responded to the allegations.
There will be a tendency for the currency to appreciation just as it happened between 2003 and 2008 when capital inflows surged into India.