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India Bonds Delayed: Global Index Inclusion Postponed
13 Jan
Summary
- India's bond inclusion in global index delayed until mid-2026.
- Operational issues cited as reason for postponement.
- 10-year bond yields rose by 5 basis points post-announcement.
Bloomberg Index Services Ltd announced on January 13, 2026, that it is delaying the inclusion of India's government bonds into its global aggregate index. This decision, attributed to unresolved operational issues, means India will not be added to the index as anticipated by market participants in February 2026.
Stakeholders acknowledged India's progress in market accessibility, including the Fully Accessible Route (FAR). However, concerns were raised about the lack of fully automated trading, post-trade tax settlement complexities, and lengthy fund registration procedures. These factors, while manageable for emerging market indices, pose challenges for a global benchmark.
BISL will continue engaging with market participants and regulators to address these operational and infrastructure considerations. A review of India's bond inclusion is now slated for mid-2026. The announcement led to a 5 basis points increase in India's 10-year bond yields.
