India’s index inclusion: Pitching for the global stage

Research evidence excerpt

India’s index inclusion: Pitching for the global stage

8 July 2026

India’s index inclusion FixedRates Income

Pitching for the global stage India

◆ India has materially lowered the barriers to investing in its Pin Ru Tan

bond market HeadThe Hongkongof APAC andRatesShanghaiStrategyBanking Corporation

Limited, Singapore Branch

◆ A clear policy push for inflows should drive further operational pin.ru.tan@hsbc.com.sg

+65 6658 8782

improvements Duncan Tan

APAC Rates Strategist

◆ Continued reforms would support India’s progression from The Hongkong and Shanghai Banking Corporation

EM benchmarks to global bond indices duncan.tan@hsbc.com.sg

+65 6658 7255

Soumya Mohanty, CFA

The 2026 Extel Global Fixed Income Research Survey is open. We would greatly Analyst, APAC Rates Strategy

appreciate your support in this poll. HSBC Securities and Capital Markets (India) Private

Limited

soumya.ranjan.mohanty@hsbc.co.in

India’s recent bond market reforms have materially reduced barriers for global +91 80 6827 3548

investors to access government bonds. While there are still some operational issues

that can be improved to align with global standards, the bigger takeaway for us from

the recent liberalisation is policymakers’ commitment to secure index inclusion and

attract foreign inflows. Through years of observing the index inclusion journeys of

China and Korea, it is clear that local policymakers’ intention is of paramount

importance. Official buy-in can help sustain momentum for further market reforms

and, in due course, support progress towards additional index inclusion milestones.

With the removal of taxes for foreign investors, the expansion of the Fully Accessible

Route and the simplification of the General Route, India has taken a big step towards