India May Enter Bloomberg Global Aggregate Index After Positive FPI Feedback

India is advancing towards possible inclusion in the Bloomberg Global Aggregate Index, supported by constructive feedback from foreign portfolio investors on bond market accessibility and operational processes, as per the news reports. 

India’s Strengthening Case for Bloomberg Global Aggregate Index 

Bloomberg Index Services gathered investor responses on including Fully Accessible Route government bonds in its benchmark index, which is tracked by nearly $3 trillion of passive assets. Investors noted India’s relatively higher government bond yields and an exchange rate near ₹88.60 per USD($), compared with China’s 10-year yield range of 1.8% to 1.9%. Improved operational comfort has also contributed to stronger expectations of inclusion. 

Estimated Timeline and Inflow Potential 

As per the news reports, a formal announcement is expected in January 2026. India is being considered for an estimated 1% weight in the index, potentially generating around $25 billion of inflows over roughly 10 months. The feedback window closes on November 30, after which Bloomberg will review the submissions and prepare its decision. 

Read More: NaBFID Secures ₹4,120 Crore in Long-Term Bond Sale at 6.86% Coupon Rate! 

Current Status of FAR Securities 

Indian FAR government bonds are already part of the Bloomberg Emerging Market Local Currency Government Index and will weigh 10% of their full market value from January 31, 2025. Investor input has highlighted improved settlement and accessibility, reinforcing expectations of a favourable decision. 

India joined the JPMorgan Emerging Market Bond Index around 2.5 years ago, drawing nearly $25 billion in inflows since. 

Conclusion 

India’s potential addition to the Bloomberg Global Aggregate Index reflects increasing international confidence in its bond market structure. While the final call is anticipated in January 2026, current indications suggest a positive outlook for the country’s bond market development. 

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