Bloomberg Index Services Postpones Indian Bond Inclusion Prompting Potential RBI Action
Bloomberg Index Services deferred Indian bond inclusion on Jan 16, 2026. This eliminates $10-20 billion in inflows, pushing the RBI to expand bond purchases.
Insights:
Bloomberg Index Services announced on Tuesday, January 16, 2026, that it has deferred the inclusion of government bonds from India 
INin its Global Aggregate Index. This decision has effectively eliminated an anticipated influx of $10-20 billion in foreign capital that analysts had expected if the inclusion had progressed in phases. The news comes at a critical time for the India 10-Year Government Bond market, which is already grappling with heavy debt issuance from state governments.
INin its Global Aggregate Index. This decision has effectively eliminated an anticipated influx of $10-20 billion in foreign capital that analysts had expected if the inclusion had progressed in phases. The news comes at a critical time for the India 10-Year Government Bond market, which is already grappling with heavy debt issuance from state governments.In response to the deferral, the Reserve Bank of India is now considering an extension of its record bond-buying program to stabilize a market facing weaker foreign demand and rising yields. Since the announcement, the yield on the India 10-Year Government Bondhas climbed by nearly 10 basis points. This rise reflects the compounding effect of the index delay alongside existing supply pressures. To manage liquidity, the central bank has already purchased 2.54 trillion rupees, equivalent to approximately $27.99 billion in US Dollar / Indian Rupee terms, through open market and secondary market operations since December.
