India, South Korea bonds to join FTSE Russell government indexes in 2025

(Reuters) – Global index provider FTSE Russell on Tuesday said it would include India’s sovereign bonds in its Emerging Markets Government Bond Index (EMGBI) starting September 2025, following index inclusion by JP Morgan and Bloomberg Index Services, potentially drawing billions of dollars into local bonds.

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 Korean government bonds would represent 2.22% of the index on a market value-weighted basis and would be included in the FTSE’s WGBI beginning in November 2025, FTSE said in a statement.

Indian securities will be a part of FTSE’s EMGBI after being on the index provider’s watch list for the last three years. It would represent 9.35% of the index on a market-value weighted basis, FTSE said.

An estimated $4.6 trillion in assets under management track the index, according to Radhika Rao, senior economist at DBS.

In a March review, FTSE had deferred inclusion of Indian bonds in its index due to taxation, registration and settlement issues but acknowledged India’s progress in the accessibility of the securities.

FTSE’s announcement follows inclusion of Indian government securities in JPMorgan’s Government Bond Index-Emerging Markets index starting in June 2024 and Bloomberg Index Services’ Emerging Market Local Currency starting in January 2025.