Finance Minister Nirmala Sitharaman, in a recent address to the Shri Ram College of Commerce (SRCC), highlighted the potential economic benefits of India's planned inclusion in JPMorgan's emerging market index. The minister projected that this move could channel approximately $23 billion of foreign capital into the country.
The process of India's inclusion in the bond index is expected to begin on June 28, 2024. It will progress over a period of ten months, with increments of 1 per cent until it reaches its maximum weighting of 10 percent.
Sitharaman also outlined her vision for India's economic growth, attributing potential advancements to both entrepreneurs and economically weaker sections of society. She noted that India, which was 10th in economic size in 2013-14, could potentially rise to become the third-largest economy globally.
However, she also cautioned that such progress is not guaranteed given the globally volatile macroeconomic situation. She emphasized the importance of political stability, policy consistency, and decisive governance for achieving economic growth. In addition, she pointed out the need for governments ready to implement reforms to stimulate business development.
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