India likely to enter Bloomberg Global Index as FPIs give positive feedback
Mumbai, Nov 18, 2025
Formal inclusion call expected in January as foreign investors endorse country's bond market operations
India’s chances of entering the Bloomberg Global Aggregate Index have strengthened after large foreign portfolio investors (FPIs) gave positive feedback about the country’s bond market operations, with an official announcement expected as early as January 2026, people aware of the development said.
Bloomberg Index Services had sought investor feedback on the inclusion of India’s Fully Accessible Route (FAR) government bonds in its flagship Global Aggregate Index, which is tracked by nearly $3 trillion of passive assets. According to multiple investors involved in the consultations, the largest global asset managers following the index have endorsed India’s entry, citing improved market access and operational comfort. Bloomberg Index Services is a wholly-owned subsidiary of Bloomberg LP that acts as an independent benchmark administrator.
They said that India offers two clear draws for global bond buyers: Higher yields compared to peers like China, whose 10-year government bond is now at 1.8 per cent-1.9 per cent; and an exchange rate around 88.6 per dollar viewed as an attractive entry point by foreign investors.
“Most of the big FPIs who already transact in Indian government securities have said India should be included. The official inclusion announcement is expected in January. India remains attractive to global investors because its government and corporate bond yields are significantly higher than those of other emerging markets such as China. Also, the current exchange rate of 88.8 per dollar offers a compelling entry point,” one person familiar with the discussions said.
In September, Bloomberg Index Services started seeking investor feedback on whether Indian government securities should be included in its flagship Global Aggregate Index.
India is currently being evaluated for a potential weight of around 1 per cent in the index, an allocation that could translate into $25 billion of inflows, spread over roughly 10 months, if admitted. The feedback window closes November 30, after which Bloomberg is expected to review inputs and make a formal inclusion call in January.
India was added to the JPMorgan Emerging Market Bond Index two-and-a-half years ago, generating around $25 billion in inflows since. The potential Bloomberg inclusion would mark another significant step in India’s integration into global bond portfolios, though timelines for actual index entry could stretch 10–12 months after the decision, according to background notes shared with investors.
Bloomberg had earlier said inclusion would depend on feedback on accessibility, settlement mechanisms and remaining operational gaps. With most large FPIs now expressing confidence in India’s processes, the market is increasingly expecting a favourable outcome once the index provider completes its review.
Indian government FAR securities are already included in the Bloomberg Emerging Market Local Currency Government Index with an initial weight of 10 per cent of their full market value on January 31, 2025.
[The Business Standard]
