India’s government bond market could see a major boost as Bloomberg Index Services is expected to include Indian bonds in its Global Aggregate Index from April 1, 2026, a move that could bring in $20–25 billion of foreign investment, people familiar with the matter told Moneycontrol.
If approved, bonds issued under India’s Fully Accessible Route (FAR) will be added to one of the world’s most followed global bond indices. These bonds are expected to get a weight of about 0.70 percent, giving India a stronger presence in global bond investment portfolios.
The inclusion will happen over a period of six months, sources said.
Sources added that nearly 90 percent of the large foreign portfolio investors (FPIs) have backed the move during Bloomberg’s consultation process, reflecting growing comfort with India’s bond market, yield attractiveness and improved investment access.
However, around 10 percent of smaller FPIs have raised concerns, mainly around operational and settlement-related issues.
A meeting to take a final call on the inclusion is scheduled for January 14, 2026, after which Bloomberg is expected to formally communicate its decision.
A Bloomberg spokesperson declined to comment.
Market experts believe the potential inflows could significantly boost demand for Indian government securities, compress bond yields and reduce the government’s borrowing costs. The likely steady inflow of foreign capital is also expected to support the rupee and improve overall market liquidity.
On November 18, Moneycontrol reported that FPIs, the ones that are part of Bloomberg Index Services Ltd, have reportedly given an encouraging response to the index provider's queries, paving the way for the proposed inclusion of Indian government securities in the Bloomberg Global Aggregate Index.
Bloomberg Index Services is a part of Bloomberg LP and a global provider of fixed income, commodity, and equity benchmarks. In September, it had sought investor feedback on whether FAR-eligible Indian government bonds should be added to the Bloomberg Global Aggregate Index. The feedback window was open till November 30, 2025.
The index provider had included India in its emerging market local currency bond index in January 2025.
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