The second delay in about six months came despite June tax changes, as Bloomberg cited the need for more confidence in settlement, tax administration and trading processes before inclusion.
Bloomberg Index Services has again deferred a decision on adding Indian government bonds to its Global Aggregate Bond Index, marking a second postponement in roughly six months despite June reforms aimed at improving India’s eligibility. The index provider said investors want greater confidence that operational improvements are consistently embedded in market practice, pointing to settlement speed, tax administration and trading automation as areas still requiring progress. The decision matters because the benchmark is tracked by trillions of dollars in assets, and inclusion would have given Indian government bonds an initial weight of about 0.7%, with projected cumulative inflows of $25 billion to $27 billion by fiscal year 2028. Indian bond yields rose after the announcement, echoing the market reaction seen after the January deferral. India has already secured entry into JP Morgan’s Emerging Market Bond Index in 2024, but Bloomberg inclusion would open the market to a broader pool of global passive bond investors.