India’s overtaking of China in some global gauges will likely usher in a bigger influx of foreign flows, giving equities in the South Asian country another boost.

By bno - Chennai Office India has overtaken China to become the largest emerging market in the MSCI All Country World Investable Market Index (ACWI IMI), marking a significant shift in the global investment landscape.

The Indian aid to the island nation comes amid a potential threat of sukuk default, which would be the world’s first. Maldives has about $500 million in outstanding sukuk debt due in 2026, according to data compiled by Bloomberg.

India has extended budgetary support to the Maldives by rolling over a USD 50 million Treasury Bill for another year. This move comes at the request of the Maldivian government and reflects India's commitment to its 'Neighbourhood First' policy.