August 1, 2026 at 01:49 AM 2 min readmarketsdeveloping
Bloomberg Defers Inclusion of Indian Government Bonds in Index
Index Inclusion Postponed:
Bloomberg Index Services Limited deferred its decision to include Indian government bonds in its flagship Global Aggregate Index. This postponement marks the second delay in approximately six months, disappointing investors anticipating the shift.
Market Accessibility Progress:
India made meaningful progress in improving market accessibility by removing withholding and capital gains taxes for eligible foreign investors starting April 1, 2026. However, market participants stated that operational aspects require more time to embed firmly in day-to-day practice.
Foreign Inflow Expectations:
Potential inclusion could have attracted foreign inflows ranging from $20 billion to $30 billion over ten months. Indian bond yields rose following the announcement as analysts awaited a clearer timeline for future reviews.
Pulse Intelligence
Context & ImpactContext & Background
- India previously secured inclusion in other emerging-market bond indices, including JPMorgan's GBI-EM and FTSE Russell's government bond index.
- Recent tax reforms aimed to ease capital flows and attract global institutional investors to domestic debt markets.
Key Consequences
- Foreign capital inflows into Indian government securities will experience a temporary delay.
- Domestic bond yields may face short-term upward pressure following the announcement.
Market & Economic Impact
Indian bond yields rose following the announcement of the deferral by Bloomberg Index Services Limited.
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