Indian government bonds entered the JP Morgan emerging market bond index, attracting significant foreign investment. This inclusion will enhance bond visibility, stability of the rupee, and the country’s balance of payments. An estimated $20-25 billion is expected to flow into India by FY25. Initial inflows strengthened the rupee. With a large local debt stock, India’s high yields and stable macroeconomic conditions make its bonds attractive to foreign investors, improving lending rates for banks.