Bloomberg postpones decision on Indian government bond inclusion in global index

Bloomberg Index Services Limited (BISL) has deferred a decision on adding Indian government bonds to its Bloomberg Global Aggregate Index. The provider said the Indian bond market has made “meaningful progress” toward meeting global standards, but recent market reforms need more time to become firmly established in day‑to‑day practice before a final inclusion decision can be made.

BISL highlighted several reforms, including expanded electronic trading platforms, the removal of withholding tax and capital gains tax for eligible foreign investors, and improvements to the post‑trade framework. However, market participants indicated that these enhancements must be consistently applied across all major investor regions and that onboarding and account‑opening processes for foreign investors still require further evidence of efficiency.

The index provider noted that while discussions with investors, regulators, custodians and other stakeholders continue, it will wait for clearer, sustained implementation of the reforms before revisiting the inclusion of Indian government bonds.