After JP Morgan & Bloomberg, FTSE Russell to include Indian bonds in EMGB index from Sept 2025

This would beryllium the 3rd planetary enslaved scale to see Indian bonds aft JP Morgan Chase & Co and Bloomberg.

“As a effect of the reclassification of India’s Market Accessibility Level from 0 to 1, Indian authorities bonds volition beryllium added to the EMGBI and determination Asian authorities enslaved indices implicit a six-month period, commencing with September 2025 scale profiles,” FTSE Russell, the London-based scale provider, said connected Tuesday successful a announcement connected its website.

The enslaved inclusion volition beryllium phased successful connected a monthly ground implicit six months successful six adjacent tranches.

“All Indian authorities bonds that are eligible nether the FAR programme and conscionable different scale inclusion rules volition beryllium added to the index, including securities with an archetypal tenor of 14 years and 30-years issued anterior to 29 July 2024,” FTSE Russell said.

FAR bonds are authorities bonds that non-residents tin put successful without limitations and the programme was designed to pull overseas superior to India’s indebtedness market.

As of the October 2024 scale profiles, 32 INR-denominated Indian authorities FAR bonds (USD 473.8 cardinal successful par magnitude outstanding) are projected to beryllium eligible for the EMGBI, representing 9.35 per cent of the scale connected a marketplace value-weighted basis.

In the EMGBI 10 per cent Capped Index, India is projected to comprise 10 per cent of the scale connected a marketplace value-weighted basis. India is projected to comprise 9.73 per cent of the AGBI, connected a marketplace value-weighted basis.

Market Accessibility Levels are cardinal to the FTSE Fixed Income Country Classification Framework and are assigned to each fixed-rate and inflation-linked section currency authorities marketplace based connected its fulfilment of a acceptable of observable, transparent criteria.

Accessibility is measured crossed 4 dimensions – market, macroeconomic and regulatory environment; overseas speech marketplace structure; enslaved marketplace structure; and planetary colony and custody. The countries that are tracked by FTSE indices are assigned a Market Accessibility Level of 0, 1 oregon 2, with 2 representing the highest level of accessibility.

In September 2023, JP Morgan Chase & Co had announced the inclusion of Indian authorities bonds successful the JP Morgan GBI-EM Global index. The inclusion, which is staggered implicit a 10-month period, started from June 28, 2024 and volition decorativeness by March 31, 2025.

In March this year, Bloomberg said that it volition see Indian bonds successful its Emerging Market (EM) Local Currency Government Index and related indices, effectual January 31, 2025. The inclusion of India FAR bonds to the Bloomberg EM indices volition besides beryllium dispersed implicit a ten-month period.

While Indian bonds inclusion to JP Morgan GBI-EM Global scale is expected to bring successful astir $25 cardinal of overseas flows, summation to the Bloomberg Bond Index is apt to pull concern exceeding $5 billion, analysts believe.