Skip to content
Search

Latest Stories

BlackRock aims to increase stake in India's government bond market

BlackRock aims to increase stake in India's government bond market

BlackRock aims to increase its stake in India's £396 billion fully investible government bond market through newly introduced exchange-traded funds (ETFs).

These bonds, accessible through the Fully Accessible Route (FAR) with no foreign investment limits, will be part of JPMorgan's emerging market debt index from June, attracting foreign money managers' interest.


Hui Sien Koay, lead index, fixed income strategist for APAC at BlackRock, told Reuters on Wednesday that globally, ETFs hold about 2 per cent of outstanding bonds, and BlackRock commands a nearly 40 per cent market share in fixed income ETFs.

"If we consider that as a barometer, and the total (India) FAR bond market size, it stands at around £396 billion, which is our opportunity set, and if we consider 2 per cent of that, it would be a realistic commercial goal for us (as an industry)," she said.

BlackRock introduced its India bond ETF in February, managing £20.63 million in assets currently, offering the lowest fees among peers, with a weighted average yield of 7.14 per cent.

BlackRock's expertise in navigating complex markets like India aids investors in areas such as trade execution and taxation, Koay added.

India's inclusion in global bond indices, a topic of discussion for nearly a decade, faced hurdles such as restrictions on foreign investors and local taxation.

Over the next eight months, Indian bonds will be integrated into JPMorgan and Bloomberg's emerging market debt indices, while FTSE Russell is yet to include domestic bonds.

India's favourable macroeconomic conditions, including high growth, a stable currency, and comparatively higher yields, make it an attractive investment destination, Koay noted.

"Since the rupee has been relatively stable, we are quite sanguine about it, because it has got a lot of tailwinds, so we are bullish for now (on India)," she said.

BlackRock is attracting investors through marketing campaigns that emphasise investment options across various asset classes, with India being a key priority theme for this year, Koay added.

(Reuters)

More For You

UK–Africa business summit 2025

UK–Africa business summit 2025

UK–Africa business summit 2025 highlights trade, technology and resilient partnerships

Highlights:

  • Dr Sudhir Ruparelia emphasised Uganda’s growing real estate, agriculture and tourism sectors.
  • Lord Dolar Popat called for closer Commonwealth ties between Africa, the UK and India.
  • Uganda’s ministers outlined regional integration, investment climate and agricultural transformation.
  • Spiritual leader Sant Trilochan Darshan Das Ji urged ethical entrepreneurship rooted in integrity.

The 15th edition of the UK–Africa Business Summit took place on Friday, 12 September at The Royal Horseguards Hotel & One Whitehall Place, bringing together senior government leaders, entrepreneurs, investors and diaspora stakeholders to strengthen trade and investment ties between the UK and African nations.

Keep ReadingShow less
Modi & Trump

Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025.

Reuters

India, US to discuss trade issues after tariff hike

INDIA and the United States will hold trade discussions in New Delhi on Tuesday, officials and Indian media reports said, as the two countries look to resolve a tariff dispute.

India currently faces high US tariffs on most of its exports and has not yet been able to reach a trade deal that would ease the pressure.

Keep ReadingShow less
Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
Getty Images

Economy shows no growth in July amid political turbulence

UK's ECONOMY showed no growth in July, according to official data released on Friday, adding to a difficult week for prime minister Keir Starmer’s government.

The Office for National Statistics (ONS) said gross domestic product was flat in July, following a 0.4 per cent rise in June.

Keep ReadingShow less