Nippon Life India, DWS partner to launch European-listed Indian Government Bond ETF

As of August 2022, the market size for Indian government-issued securities was over $1 trillion, placing the country among the respective markets in Canada and Spain. In the local currency space among emerging markets, India is second only to China’s treasury market.

However, Indian rupee-denominated government bonds are currently not included in major indices such as Bloomberg Global-Aggregate or JPMorgan Government Bonds – Emerging Markets Global Diversified due to limited liquidity and access.

“The relevant index (JP Morgan India Government Fully Accessible Route (FAR) Bond Index) aims to track the performance of fixed-rate Indian rupee-denominated Government of India bonds, which are made available to non-residents under the fully accessible route. FAR is a separate channel set up by the Reserve Bank of India in consultation with the Government of India, through which eligible investors can invest in specified Government securities without any investment limit. Nippon Life India These instruments include FAR-qualified fixed rate and zero-coupon bonds, the AMC said in its official statement.

“We are delighted to provide DWS’s investor base with access to India’s growth story through this association. Long-term track record and deep understanding of the Indian Capital Markets and ETF segment can be leveraged through this opportunity. I believe such collaboration with DWS can go a long way in attracting global allocation to India”, said Sandeep Sikka, Executive Director and CEO, Nippon Life India Asset Management Ltd.

Michael Mohr, Head of Passive Product Specialists at Germany-based DWS, said, “DWS is constantly evolving its range of ETFs to meet the ever-evolving needs of investors. Through this collaboration, we offer our clients attractive Indian Bonds provide access to the market. Nippon Life India Asset Management brings its in-depth knowledge of the Indian fixed-income market.”

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