India’s prospects for joining the Bloomberg Global Aggregate Index have improved following favorable feedback from large foreign portfolio investors regarding the bond market, with an official announcement anticipated by January 2026.
Bloomberg Index Services is gathering investor opinions on the potential entry of India’s Fully Accessible Route (FAR) government bonds into its Global Aggregate Index, which is followed by nearly $3 trillion in passive assets. Major global asset managers have supported India’s inclusion, highlighting enhanced market access and operational ease. Bloomberg Index Services operates as an independent benchmark administrator and is a subsidiary of Bloomberg LP.
India attracts global bond buyers due to higher yields than peers such as China, where the 10-year government bond yields 1.8% to 1.9%. Additionally, an exchange rate of approximately 88.6 per dollar is seen as favorable for foreign investors.
India is anticipated to be officially included in the list of countries for foreign portfolio investments (FPIs) in January. Major FPIs see India as attractive due to higher government and corporate bond yields compared to other emerging markets like China, alongside a favorable exchange rate of 88.8 per dollar, creating a strong entry point for global investors.
India may receive a weight of approximately 1 percent in an index, potentially leading to $25 billion in inflows over about 10 months, should it be included. The feedback period ends on November 30, after which Bloomberg will evaluate inputs and decide on the inclusion in January.
India’s addition to the JPMorgan Emerging Market Bond Index has led to approximately $25 billion in inflows over the past two-and-a-half years. The potential inclusion by Bloomberg would further integrate India into global bond portfolios, although actual index entry could take 10–12 months following the decision.
Bloomberg indicated that the inclusion of Indian government FAR securities in its index relies on feedback regarding accessibility, settlement mechanisms, and operational gaps. Given the increasing confidence of large FPIs in India’s processes, a favorable outcome is anticipated upon completion of the review. Currently, these securities are part of the Bloomberg Emerging Market Local Currency Government Index with an initial weight of 10 percent set for January 31, 2025.
