India is set to see billions in inflows into the country's rupee-denominated government debt market, as state bonds make their debut on JPMorgan's emerging market index on Friday. This is reportedly the first time Indian government bonds have been included in a global index. India has seen foreign inflows to the tune of about $10 billion into its bond market over the past nine months since the announcement, Puneet Pal, head of fixed income at PGIM India Mutual Fund, told CNBC "Street Signs Asia." Last September, JPMorgan said the inclusion of Indian bonds in its Government Bond Index-Emerging Markets will be staggered over 10 months, starting from a 1% weightage in June to a maximum 10% in April next year. Pal said that over the medium- to long-term, the inclusion of Indian government bonds will have a positive impact across the bond markets.

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Persons: Puneet Pal, Deepak Agrawal, Pal Organizations: PGIM India Mutual Fund, CNBC, JPMorgan, Government, Kotak Mutual Fund Locations: India