European asset manager Amundi has expanded its emerging markets fixed income offering with the launch of its exchange-traded fund (ETF) on Indian government bonds.

The Amundi JP Morgan INR India Government Bond UCITS ETF tracks the JP Morgan India Government Fully Accessible Route (FAR) Bonds Index.

The index covers Indian rupee-denominated government bonds that have been made available to international investors.

Amundi noted that these bonds offer investment routes for global investors to participate in the Indian bond market.

The asset manager stated that the launch of its new ETF underscored its “commitment to providing investors with robust and accessible investment options with potentially highly attractive yields and diversification benefits".

It argued that India’s growth, both at a macro level and in its fixed income market, offered a compelling investment case.

Furthermore, Amundi said that the recent inclusion of Indian government bonds in the JP Morgan GBI-EM Global Series indices was driving increased demand and liquidity in the market, which should, in turn, support the case for providing diversification in a global portfolio allocation.

Commenting on the launch, Amundi head of ETF, indexing and smart beta, Benoit Sorel, said: "India's economic momentum and the recent inclusion of its government bonds in key global indices present a unique opportunity for international investors.

“By launching this ETF on Indian government bonds, we are pleased to enable our clients to access an enhanced portfolio diversification tool at a competitive pricing on the market."

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