India likely to enter Bloomberg Global Index as FPIs give positive feedback
- IBEF
- November 19, 2025
India is poised for potential inclusion in the Bloomberg Global Aggregate Index after large foreign portfolio investors (FPIs) provided positive feedback on the country’s government bond market operations. Bloomberg Index Services, a wholly owned subsidiary of Bloomberg Limited Partnership (LP), sought investor input on including India’s Fully Accessible Route (FAR) government bonds in its flagship Global Aggregate Index, which is tracked by nearly Rs. 2,65,74,000 crore (US$ 3 trillion) of passive assets. Investors highlighted India’s relatively higher yields compared with peers such as China, where 10-year government bonds yield 1.8–1.9%, and an attractive exchange rate near 88.6 per US$. The official inclusion announcement is expected in January 2026, with India being evaluated for a potential 1% allocation, which could translate into Rs. 2,21,450 crore (US$ 25 billion) of inflows over roughly 10 months.
India’s bond market has previously benefited from integration into global indices, with its entry into the JPMorgan Emerging Market Bond Index about two-and-a-half years ago generating around Rs. 2,21,450 crore (US$ 25 billion) of inflows. The potential Bloomberg inclusion would mark another significant step in integrating Indian government and corporate bonds into global portfolios. Bloomberg’s final decision will consider accessibility, settlement mechanisms, and operational readiness, and market participants now expect a favourable outcome as large FPIs express confidence in India’s processes. Indian FAR securities are already part of the Bloomberg Emerging Market Local Currency Government Index with an initial weight of 10% of their full market value as of January 31, 2025.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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