The news of JPMorgan Chase’s decision to trim India’s weight in its flagship GBI-EM Global Diversified Index from 10% to 9% has not deterred the market. Market participants believe that it will have a limited impact. Vishal Goenka, Co-founder of Indiabonds, said, “The total FAR investments in government bond markets imply more than adequate headroom for index investments, and reduction by 1% will not impact inflows.” Further adding that “with the recent country upgrade and US rates headed down, India becomes a value interest rate choice destination for foreign investors.” As of September 16, the investment via fully accessible route (FAR) stood at 3.01 trillion, up 2% from Rs 2.95 trillion as on August 30, 2025. Limited impact despite index recalibration The recalibration, set to be phased in during the first half of 2026, is part of a broader move to reduce concentration risk and enhance regional diversification across the index. While the adjustment will marginally redirect passive flows toward smaller EM economies like Thailand, Poland and South Africa, analysts say India’s fundamentals remain compelling. The country’s recent sovereign rating upgrade, coupled with expectations of easing US interest rates, continues to position India as a preferred destination for global fixed-income investors.