India will get into global bond indices on own terms: FinMin official

Ajay Seth, the economic affairs secretary, hinted that there is no immediate plan of joining the indices

long-term bonds
Deploying a sartorial analogy, Finance Secretary TV Somanathan said the indices are an exclusive club or gymkhana, which insists on entry only for those wearing ties
Press Trust of India Mumbai
2 min read Last Updated : Feb 04 2023 | 8:48 PM IST

India will not bend over backwards to get included in the global bond indices, a top finance ministry official said on Saturday.

Deploying a sartorial analogy, Finance Secretary TV Somanathan said the indices are an exclusive club or gymkhana, which insists on entry only for those wearing ties.

"...if we get into this club, it will be with our dhoti and saree. We will not change our domestic policies to suit foreign investors," he said, addressing a post-budget interaction with industry players in the financial capital.

He said there are both positives and negatives of such an inclusion, which was spoken about in a previous budget announcement, and India will not "bend over backwards" to gain entry.

India's policies will be based on domestic requirements, and there will not be any change to the stance to suit the fancy of global bond investors, he said.

The global indices should allow entry for India only if such a stance is acceptable to them, he said.

Positives of gaining entry include higher fund flows, but the same also exposes us to risks of volatility and pullouts due to non-domestic factors, Somanathan said, pointing to the experience of "destabilisation" in some east-Asian economies.

Ajay Seth, the economic affairs secretary, hinted that there is no immediate plan of joining the indices.

"At the moment, there is quite a bit of uncertainty at the global level both in terms of the exchange rate and interest rate etc. It is not the right time to press the pedal on that aspect.

"When the global markets are a little bit more uniform, then at that point of time this piece will have to be picked up again," he said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :BondsIndicesFinance Ministry

First Published: Feb 04 2023 | 8:48 PM IST

Next Story