Bloomberg to Include Indian G-Securities in Emerging Market Indices

• 06 Mar 2024

Recently, Bloomberg's moved to include Indian G-Securities in its EM Local Currency Government Index which is expected to lower government borrowing costs.

Key Points

• Phased Inclusion: Indian Fully Accessible Route (FAR) bonds to be included with an initial weight of 10%, increasing monthly until reaching full market value by October 2025.
• Index Inclusions: Indices affected include Bloomberg EM Local Currency Government Index and related sub-indices, reflecting India's growing importance in the global economy.
• Financial Market Development: India's financial market growth highlighted by Bloomberg founder, signalling its significance in the global economic landscape.
• Investor Access: Inclusion expected to attract $40 billion in foreign investment into Indian G-Secs market over the next two years, enhancing market participation.
• Global Investment Community: Bloomberg Indices aims to facilitate global investor access to Indian markets, supporting India's emergence as a financial hub.
• Consultative Process: Decision made after extensive consultation with market participants and stakeholders, reflecting market demand and readiness.
• Strategic Milestone: Inclusion marks a significant milestone in India's financial market development, attracting global attention and investment.