Indian government bonds to be included in the FTSE EM Government Bond Index

The government bonds of India and South Korea will be included in the FTSE Emerging Markets Government Bond Index (EMGBI), according to an official statement released on Wednesday, October 9.

India’s market accessibility has been reclassified from 0 to 1 and as a result, the Indian government bonds will be added to the EMGBI and regional government bond indices over a six-month period, starting September 2025.

As of the October 2024 index profiles, 32 rupee-dominated Indian Government FAR bonds are projected to be eligible for the EMGBI, and will represent 9.35% of the index on a market value weighted basis.

Indian Government Bonds were included in the JPMorgan Emerging Market Bond index from June this year and will be included in the Bloomberg Index Services’ Emerging Market Local Currency starting January 2025.

“Since its last review, FTSE Russell acknowledges further progress in the accessibility of the Indian government bond market as more international investors have entered the market as part of their global emerging markets government bond portfolios,” the statement from FTSE Russell said.

FTSE Russell also added that the issues related to Foreign Portfolio Investors registration process continue to be addressed by local regulators, easing the onboarding process for international investors.

The inclusion will be done on a phased-in and monthly basis over a six-month period and in six equal tranches.

All Indian government bonds that are eligible under the FAR program and meet other index inclusion rules will be added to the index, including securities with an original tenor of 14 years and 30 years issued prior to July 29, 2024.