Morgan Stanley sees India winning global bond index spot early next year

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An India Rupee note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/Files

LONDON, Sept 8 (Reuters) - India is likely to win inclusion into one of the world's top bond indices early next year, investment bank Morgan Stanley said on Wednesday, predicting it could trigger an instant $40 billion buying surge and as much as $250 billion over the next decade.

JPMorgan's influential GBI-EM and Global Aggregate indices are likely to include India in early 2022, Morgan Stanley's analysts said in a note.

"We expect one-off index inflows of $40 billion in 2022/23, followed by annual inflows of $18.5 billion in the next decade, pushing foreign ownership up to 9% by 2031," they added.

Reporting by Marc Jones; Editing by Tom Arnold

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