Bloomberg Delays Indian Bond Inclusion, Citing Infrastructure Gaps
Overview
Bloomberg Index Services has postponed the inclusion of Indian government bonds into its Global Aggregate Index. Citing operational and market infrastructure concerns, the index provider stated a review will continue with updates expected by mid-2026. Issues like non-automated trading workflows and complex settlement processes were highlighted.
Bloomberg Postpones Indian Bond Index Inclusion
Bloomberg Index Services Limited (BISL) announced Tuesday it will delay the inclusion of Indian government bonds in its prestigious Global Aggregate Index. The decision, which postpones a significant move for India's debt market, stems from outstanding operational and market infrastructure challenges that require further evaluation.
Infrastructure Hurdles Identified
The index provider cited feedback from market participants, custodians, and regulators pointing to issues that need resolution before a flagship global index inclusion. These include the absence of fully automated trading workflows, settlement and repatriation timelines affected by post-trade tax processes, and the complexity of fund registration procedures. While these aspects are often seen in emerging markets, they pose hurdles for the broader investor base of the Global Aggregate Index.
Future Outlook Remains Uncertain
BISL intends to keep its review of Indian government bonds open, continuing engagement with stakeholders to identify further efficiencies. A definitive update on the next steps regarding potential inclusion is slated for mid-year 2026. The delay means that anticipated inflows into the Indian debt market from passive index-tracking funds will be deferred.
