Bloomberg seeks investor feedback on Indian FAR bond inclusion in global aggregate index

The FAR bonds were introduced to boost foreign participation in India's bond market, enabling foreign entities to invest without facing previously applicable investment limits.

Bloomberg Index Services - a subsidiary of Bloomberg LP that creates benchmark indices across fixed income, commodities and equities - is seeking feedback from investors if Indian bonds under the Fully Accessible Route (FAR) should be added to the Bloomberg Global Aggregate Index, according to an internal document titled 'Inclusion of India FAR bonds in the Global Aggregate Index', as seen by Moneycontrol.

The document will seek feedback on the "potential inclusion of Indian FAR bonds in the Global Aggregate Index," which is to be submitted by November 30, 2025.

Seeking Feedback on FAR Bonds

The document showed that Bloomberg Index Services (BISL) is opening consultation to solicit client feedback on a range of topics related to the Bloomberg Fixed Income Indices. As part of this consultation, BISL will also be seeking feedback at upcoming Index Advisory Council (IACs) meetings in the US, Europe and Asia, in October and November 2025.

BISL will decide unilaterally whether, and how, to respond to any feedback, comment, or recommendation that results from the review process and makes no guarantee nor is under any obligation to comply with responses, the document said.

This process of consultation may result in no changes or outcome, but if BISL decides to facilitate the changes in question, a formal announcement shall be published, said the document.

The index provider had included India in its emerging market local currency bond index in January 2025.

Potential Impact

India has 41 securities under the FAR for which there are no foreign investment limits. If all 41 were to enter the Global Aggregate as of August 2025, the FAR bonds would represent $502 billion in market value, or 0.7 percent in weight, making Rupee the 9th largest currency by market value out of the 26 currencies in the Global Aggregate Index, Bloomberg said in a communication to its investors.

FAR Bonds

India's FAR bonds, or Fully Accessible Route bonds, are Indian government securities - introduced by the central bank in 2020 - that allow non-resident investors unrestricted access and investment without any caps.

The FAR bonds were introduced to boost foreign participation in India's bond market, enabling foreign entities to invest without facing previously applicable investment limits. These bonds have also been included in major global indices like the JPMorgan GBI-EM Index, enhancing the profile of Indian debt.