In accordance with one of Europe's largest asset managers, JPMorgan Chase & Co. will likely include India's sovereign bonds in its indexes next year as investment hurdles are cleared.

"According to our meeting with the index provider, India is keen on that inclusion, even though it may not appear so from the outside," Sabrina Jacobs, senior client portfolio manager for emerging-market fixed income at Pictet Asset Management SA, said in an interview. "We're looking at mid-2024 as a starting point for inclusion, followed by a phase in."

India has in recent years come close to opening its $1 trillion government debt market to more global funds before pulling back from meeting the requirements for index inclusions. It’s the world’s last big emerging market that hasn’t joined others like China on the international gauges, with policymakers concerned about hot money inflows.

Morgan Stanley estimated that India's inclusion in two of three global bond indexes, including a JPMorgan developing market index, would result in $40 billion in inflows.

By October, JPMorgan is expected to release the results of its index reviews. It stated last year that investors wanted issues such as a lengthy registration process and operational readiness required for onshore trading, settlement, and custody of assets resolved.