Bloomberg defers India bond inclusion

Bloomberg Index Services (BISL) has deferred the inclusion of Indian government bonds in its flagship Bloomberg Global Aggregate Index. The decision, announced on January 13, 2026, was attributed to operational and market-infrastructure considerations, despite broad support for the long-term trajectory of the Indian government bond market. Key concerns highlighted by respondents included the lack of fully automated trading workflows, complex settlement and repatriation timelines for post-trade tax processes, and lengthy fund registration procedures. Following the announcement, India's 10-year bond yields rose by 5-6 basis points, reflecting market disappointment as many participants had expected inclusion by February 2026. BISL stated it would keep the review open and ongoing, engaging with stakeholders and providing an update by mid-2026. This deferral delays potential passive inflows into India's bond market, which had seen inclusions in other emerging market benchmarks like the JPMorgan Emerging Market Local Currency Index, Bloomberg Emerging Market Local Currency Bond Index, and FTSE Russell Emerging Markets Index.