Not too 'FAR': India set to enter Bloomberg index on FPI thumbs up

Formal call likely in Jan; inclusion may trigger $25 billion inflows

- ANJALI KUMARI & MANOJIT SAHA

India's chances of entering the Bloomberg Global Aggregate Index have strengthened after large foreign portfolio investors (FPIs) gave positive feedback on the country's bond market operations, with an official announcement expected as early as January 2026, said people aware of the development.

Bloomberg Index Services had sought investor feedback on the inclusion of India's fully accessible route (FAR) government bonds in its flagship Global Aggregate Index, tracked by nearly $3 trillion of passive assets. According to multiple investors involved in the consultations, leading global asset managers following the index have endorsed India's entry, citing improved market access and operational comfort.

They said that India offers two clear draws for global bond buyers: Higher yields than peers like China, the yield on whose 10-year government bond is now at 1.8 per cent-1.9 per cent; and an exchange rate around 88.6 per dollar, which is seen as an attractive entry point by foreign investors.