JP Morgan has announced the inclusion of Indian G-secs in the GBI-EM Global index suite. This move holds significant structural benefits for cost of capital, the balance of payments, the Indian Rupee, and long-term growth. Explore the macro-implications by referring to the note.

Key Highlights:

1. Market consensus of a substantial $30 billion debt inflows over the next 18 months
2. Enhanced funding for the current account deficit to provide stability to the Indian Rupee
3. An opportunity for the Reserve Bank of India to build foreign exchange reserves
4. Potential for reduced borrowing costs for both the government and the private sector
5. A positive structural development for India’s long-term growth prospects
6. Risks – heightened vulnerability to external shocks and intensified scrutiny of fiscal policy