(Reuters) – Russell Global Indexes said on Tuesday it will include Indian sovereign bonds in the Emerging Market Government Bond Index (EMGBI) from September 2025, following the inclusion of the index by JPMorgan and Bloomberg Index Services, which could attract billions of dollars into bonds. Local. .
The London-based index provider also added South Korean government bonds to the FTSE World Government Bond Index (WGBI) after two years on its watch list.
South Korea’s government bonds will represent 2.22% of the index on a market capitalization-weighted basis and will be included in the FTSE’s WGBI index starting in November 2025, FTSE said in a statement.
Indian securities will be part of FTSE’s EMGBI index after being on the index provider’s watchlist for the past three years. FTSE said it would represent 9.35% of the index on a market capitalization weighted basis.
EMGBI has a market capitalization of $4.7 trillion, according to a FTSE statement.
“The decision represents positive sentiment and will structurally strengthen the demand side for Indian bonds,” said Madhavi Arora, chief economist at financial services firm Emkay Global.
Indian bonds have seen foreign inflows of nearly $18.5 billion since their inclusion in the JPMorgan Emerging Markets Index was announced in September 2023.
In its March review, the FTSE delayed including Indian bonds in its index due to tax, registration and settlement issues, but acknowledged the progress India has made in access to securities.
The FTSE announcement follows the inclusion of Indian government securities in JPMorgan’s Emerging Markets Government Bond Index from June 2024 and Bloomberg Index Services’ Emerging Markets Local Currency Index from January 2025.
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