Bloomberg global index entry in sight for Indian G-Secs

Indian government bonds are on the cusp of inclusion in the Bloomberg Global Aggregate Index, with a decision anticipated in mid-July 2026. Tax exemptions on interest income and capital gains, along with the RBI's addition of 15, 20 and 30-year bonds to the FPI-eligible fully accessible route, have fueled optimism and driven a recent bond rally, with the 10-year yield softening 26 basis points in June to 6.74%. Foreign portfolio investors have already poured a record 55,518 crore rupees into Indian government bonds in June, and Goldman Sachs estimates around 15 billion dollars in passive inflows during the phase-in period following inclusion.