FM modulation index is = (peak frequency deviation / modulation frequency)
This schematic use a reactance modulator. When the modulating signal is applied to the base of Q1, the emitter-to-base bias varies at the modulation rate.
In this case the modulation index depends by the emitter-to-base reactance, by the Q of the LC tank circuit (L1, C2, and C3) and depends also by the modulation frequency.