Indian, South Korean bonds to join FTSE Russell government indices in 2025 By Reuters

(Reuters) – Global index provider Russell said on Tuesday it will include India’s sovereign bonds in its Emerging Markets Government Bond Index (EMGBI) from September 2025, following the inclusion of indices by JP Morgan and Bloomberg Index Services, which would could raise billions of dollars in 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 account for 2.22% of the index on a market value-weighted basis and would be included in FTSE’s WGBI from November 2025, FTSE said in a statement.

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

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

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

FTSE’s announcement follows the inclusion of Indian government bonds in JPMorgan’s Emerging Markets Government Bond Index from June 2024 and in local currency for Bloomberg Index Services’ Emerging Markets Index from January 2025.