Global index provider FTSE Russell has continued to keep India in the watchlist for inclusion its emerging market government bond index, thereby not following JP Morgan, which had last week announced that it will include Indian government securities (G-Secs) in its emerging market index from next year.

JP Morgan’s move had led to expectations that peers like FTSE and Bloomberg Barclays will also follow suit. Economists and bond market circles feel that JP Morgan’s step could lead to inflows of at least $24 billion into India’s debt market.

After its annual country classification review, FTSE said India will remain on its watchlist. The country has been in this status since March 2021. “Areas for improvement highlighted by international investors remain largely unchanged from the previous March 2023 review,” the index provider said.