Daijiworld Media Network – New Delhi

New Delhi, Nov 18: India’s prospects of entering the prestigious Bloomberg Global Aggregate Index have brightened, with major foreign portfolio investors (FPIs) giving strong positive feedback on the country’s bond market operations. A formal announcement is expected as early as January 2026, sources said.

Bloomberg Index Services recently sought investor views on adding India’s Fully Accessible Route (FAR) government bonds to its flagship index, which is tracked by nearly USD 3 trillion in passive assets. Several top global asset managers have endorsed India’s inclusion, citing improved market access, smoother operations, and attractive returns.

According to investors part of the consultations, India currently offers two major advantages — higher bond yields compared to markets like China, where the 10-year yield hovers around 1.8–1.9%, and a favourable exchange rate of about ?88.6 per US dollar, seen as an appealing entry point for foreign buyers.

“Most large FPIs dealing in Indian government securities support India’s inclusion. The official announcement is likely in January,” said a source aware of the discussions. “India remains attractive because its government and corporate bond yields continue to outperform other emerging markets.”

Bloomberg began seeking investor feedback in September on including Indian securities, which could carry an initial index weight of around 1%. If approved, this may lead to USD 25 billion in inflows over roughly 10 months. The feedback window closes on November 30, following which Bloomberg will review inputs and make its decision.

India was added to the JPMorgan Emerging Market Bond Index two-and-a-half years ago, resulting in similar inflows. Inclusion in Bloomberg’s flagship index would mark another milestone in India’s global financial integration, though the actual entry could take 10–12 months after the formal announcement.

Bloomberg had earlier said that easier accessibility, smoother settlement mechanisms, and resolution of operational gaps would determine India’s inclusion. With most FPIs now expressing confidence, expectations of a favourable outcome have strengthened.
Indian FAR securities are already set to be included in the Bloomberg Emerging Market Local Currency Government Index with a 10% initial weight from January 31.