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India Becomes Part of JP Morgan’s GBI-EM, Anticipates $23 Billion Foreign Exchange Influx

India Joins JP Morgan’s GBI-EM, Predicts $23 Billion Forex Inflow

In a significant development for the Indian economy, Finance Minister Nirmala Sitharaman announced on Thursday that the country has been included in JP Morgan’s Government Bond Index-Emerging Markets (GBI-EM) from June 28, 2023. This inclusion is expected to stimulate a substantial $23 billion forex inflow.

Enhancing India’s Position in Global Financial Markets

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In a major boost for the Indian economy, Finance Minister Nirmala Sitharaman revealed on Thursday that India has been granted entry into JP Morgan’s prestigious Government Bond Index-Emerging Markets (GBI-EM) starting from June 28, 2023. This development is set to have significant implications, with an estimated influx of $23 billion in forex.

Strengthening India’s Financial System

Sitharaman highlighted that 23 Indian bonds under the Fully Accessible Route (FAR) will contribute to a 10% weightage in the GBI-EM Global Diversified. This notable inclusion showcases the robustness and stability of India’s financial system, making it increasingly appealing to global investors.

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Impressive Foreign Direct Investment Performance

The Finance Minister also emphasized India’s remarkable performance in attracting foreign direct investment (FDI). Over the span of nine years, India has successfully secured $595.25 billion in FDI inflows, a testament to its consistent policies and favorable macroeconomic conditions.

Driving Economic Inclusivity and Social Equity

Furthermore, Sitharaman highlighted the implementation of the ‘Nudge Theory’ in various government schemes. Initiatives such as PM SVANidhi, Beti Bachao, Beti Padhao, Stand-up India loans for women, and PM Vishwakarma Yojana align with the Prime Minister’s empowerment principle. These programs aim to foster economic inclusivity and social equity, reflecting India’s commitment to sustainable development.

A Promising Milestone for India

This announcement marks a significant milestone for India as it continues to solidify its position in global financial markets. The inclusion in JP Morgan’s GBI-EM is expected to attract further international investment, contributing positively to the country’s overall economic health.

This article was written with a human touch and reviewed by an editor.

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