Why investors are not losing sleep over delay in India’s inclusion in bond indices

The Indian market is no longer holding its breath for news on the inclusion of Indian bonds in global bond indices. The market has reconciled to the view that the government and regulators are not eager to change rules just to facilitate the inclusion of Indian bonds into global indices. Foreign capital has been coming into the country regardless. However, there is demand from investors to participate in the Indian bond market, as the Indian economy is resilient and currency stable, making returns attractive.