India's $1.3 trillion sovereign debt market has become a significant attraction for global investors, particularly with its inclusion in JPMorgan's emerging market debt index from June 28. This marks the first time India's sovereign debt has been included in a major benchmark, with more than $400 billion worth of bonds giving the country a 10% share of the widely-tracked measure. The inclusion is expected to attract $2-3 billion in monthly foreign institutional investor inflows. This milestone could be a 'double-edged sword,' potentially boosting the economy while also presenting challenges. The inflows have already helped stabilize the Indian rupee against its Asian peers. India's markets regulator, Sebi, is also working to reduce paperwork for foreign investors and has approved new rules to raise the bar for launching derivative contracts on individual stocks to prevent market manipulation.