InvestorQ : Are there any risks involved in Indian bonds being included in global bond indices?
Ria Jain made post

Are there any risks involved in Indian bonds being included in global bond indices?

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Dia Deshpande answered.
3 months ago
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There could be a problem if India is downgraded even 1 notch as we are in the lowest Investment Grade. That can put capital flight pressure. In such cases, the rupee weakness also tends to get accentuated by debt market outflows. Indian government will have less control on the bond action in markets. However, with forex reserves of $645 billion, India has the capacity to manage risks, so inclusion in indices will be more of a benefit to India.

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