Bloomberg Index Services has postponed its decision on whether to include Indian government bonds in the Bloomberg Global Aggregate Index for a second time.
The index provider stated that while global investors recognize India's progress on market access, they require evidence that recent operational reforms are effectively functioning in everyday trading before sovereign bonds can be added to the flagship index.
The deferral maintains the status quo for international portfolio managers tracking the Global Aggregate Index, which serves as a benchmark for trillions of dollars in fixed-income assets.
Inclusion in the index typically triggers significant passive inflows as funds rebalance to match the benchmark.
By delaying the decision, Bloomberg is signaling that structural improvements in the Indian bond market must be demonstrated through consistent trading activity rather than just regulatory announcements.
This development follows a previous deferral, indicating that the bar for inclusion remains high.