1 month ago
Bloomberg Defers Indian Bond Inclusion Again
Bloomberg, a big company that makes lists of bonds, decided not to add India’s government bonds to its top list again.
They want to see that new rules, like tax breaks for foreign buyers, are working well every day.
The government made changes on June 5 to make bonds easier to buy.
If India’s bonds join the list, it could bring a lot of money from other countries and help India borrow cheaper.
But because some parts of the market still need to improve, Bloomberg is waiting a bit longer.
Bloomberg Index Services Ltd (BISL) has deferred inclusion of Indian government bonds in its Bloomberg Global Aggregate Index for a second time.
BISL says reforms announced on June 5—such as tax exemptions and expanded electronic trading—must be fully embedded in day‑to‑day market practice before inclusion.
The deferral follows earlier delays in January and January 2025, with Bloomberg citing settlement timelines, tax procedures and trading infrastructure as concerns.
Inclusion is expected to bring $20‑$30 billion of foreign inflows and lower India’s borrowing costs, but the delay may keep bond yields higher.
Indian authorities have removed withholding and capital‑gain taxes for foreign investors and expanded the Fully Accessible Route for sovereign bonds.
- Who
- Bloomberg Index Services Ltd, Indian government, foreign investors
- What
- Deferral of inclusion of Indian government bonds in Bloomberg's flagship index
- Where
- India
- When
- Friday (2024)
- Why
- Reforms must be fully embedded in day‑to‑day market practice before inclusion
Key facts
- Index
- Bloomberg Global Aggregate Index
- Deferral Count
- Second
- Expected Inflows
- $20-30 billion
- Reforms Announced
- June 5, 2024
- Tax Exemptions
- Capital gains and withholding tax for foreign investors
Quotes
Bloomberg Index Services spokesperson
Representative of Bloomberg Index Services explaining reasons for delay
“"Feedback received during BISL’s continued engagement indicates that many market participants would like to see these enhancements become more firmly established in day-to-day market practice before a decision is made on index inclusion."”
livemint.com
Sources
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