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India eyes major bond index entry as tax exemptions sweeten appeal

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India eyes major bond index entry as tax exemptions sweeten appeal
India plans to make a renewed pitch for inclusion of its sovereign debt in major global bond gauges, including the Bloomberg Global Aggregate Index, after exempting foreign investors from capital gains and withholding taxes and vastly widening the investable pool of long-dated securities, officials said.

Reserve Bank of India (RBI) and finance ministry officials may also reach out to the Basel-based Bank for International Settlements (BIS) for talks, they said. BIS has been given a special tax-exempt status in the latest rejig. BIS invests significantly in government securities (G-secs) and enjoys tax-free status everywhere.

India to Pitch for Bond Indices Entry AgainETMarkets.com

Latest policy steps seen upping India’s chances; finmin, RBI to tap newly tax-exempt BIS, others

India eyes major bond index entry as tax exemptions sweeten appeal
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India is set to reapply for inclusion in major global bond indices. This follows significant tax exemptions for foreign investors on capital gains and withholding taxes. The country has also expanded its long-dated securities pool. Officials are engaging with global index operators and the Bank for International Settlements. These moves aim to attract substantial foreign investment into Indian government bonds.


With the latest development, it is expected to bring $7-11 billion into India, one of the officials said. “We would be talking to them (global bond index operators)…There is regular engagement in any case,” said a second official, adding that major concerns have been considerably addressed.
Global Relevance
Issues expressed by bond operators earlier include tax benefits, market access and settlement, as per the official cited.


Clarity on trade settlement oversight is also likely to lift the likelihood of India’s inclusion in the Bloomberg Global gauge, which is tracked by multiple bulge-bracket funds worldwide for passive allocations into fixed income instruments. Even before formal inclusion talks are held, India should draw investments of about $5 billion into specified bonds immediately, market participants told ET.
“We expect these tax exemptions to make investing in Indian government bonds compelling for many foreign investors, and also significantly strengthen the case for inclusion in the Bloomberg Global Aggregate Index, especially if these bonds are made eligible for Euroclear settlement,” said Parul Mittal Sinha, head of markets (India and South Asia), Standard Chartered Bank. “We expect incremental inflows of approximately $5 billion in Indian government bonds from FPIs in the immediate future in response to these announcements, aided by tax exemptions and expectations of improved performance of the rupee versus other Asian currencies.”India has been a part of the JP Morgan Global Bond Index-Emerging Markets from June 2024, Bloomberg’s EM Local Currency Government Index from January 2025, and the FTSE Russell Emerging Market Index since last September. However, Bloomberg’s Global Aggregate Bond Index—one of the world’s most widely used indices—deferred its India inclusion in January, signalling further evaluation of key operational and market infrastructure issues. Back then, Bloomberg’s index services had cited infrastructure bottlenecks related to trading workflows and complex fund registration processes to defer its decision to include Indian instruments on its global gauge.

Typically, index inclusion makes global funds tracking those benchmarks to allocate capital proportionately to the country’s weight. This can potentially spur additional annual foreign fund flows worth tens of billions of dollars into India, lower the government’s borrowing cost and deepen the bond market, analysts said. Higher inflows can also help reverse the rupee fall.

Welcome Moves
A raft of government announcements on Friday brightened prospects of inclusion in the remaining major global indices, said analysts.

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Foreign portfolio investors (FPIs) faced a 12.5% long-term capital gains (LTCG) tax on listed shares and bonds held longer than 12 months and a 20% withholding tax on interest earned on G-secs.

The government brought in an ordinance to scrap these levies. It also added G-secs in tenors of 15-, 30- and 40 years, as well as sovereign green bonds, to the list of specified securities under the fully accessible route for FPIs investments. Earlier, the facility was only available for papers with tenors of up to 10 years.

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Vertu in pole position as one of the UK’s Top 100 Apprenticeship Employers

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Vertu emerged as as the highest-ranked automotive retail group on the high profile list

Some of Vertu's apprentices with senior management

Some of Vertu’s apprentices with senior management(Image: Matt Roberts)

Gateshead vehicle retail giant Vertu Motors plc has been recognised as one of the UK’s Top 100 Apprenticeship Employers for 2026. The firm was the highest-ranked automotive retail group on the national rankings, compiled by the UK Government and HIGHERiN.

The list celebrates organisations across England that demonstrate a strong commitment to apprenticeships through achievement, opportunity and apprentice experience. Bosses at Vertu say its inclusion recognises its success in consistently delivering across all three categories, reinforcing its focus on developing future talent within the business.

The Top 100 and Top 50 SME Apprenticeship Employer lists assess employers on successful completion rates, the breadth and accessibility of opportunities offered – particularly to young people – and the quality of the apprentice experience, as reflected in feedback and reviews.

The company currently supports 285 apprentices, including 12 undertaking degree-level apprenticeships. The group works in partnership with 16 training providers to deliver 26 apprenticeship standards, ensuring skills development aligns with the operational needs of the business.

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In the last financial year, 130 apprentices successfully completed their programmes. During the same period, Vertu welcomed over 50 new apprentices, with a further cohort joining in the current financial year to date.

Robert Forrester, chief executive of Vertu, said: “This recognition highlights the work being done across the business to create meaningful career pathways for young people and older colleagues who are looking to expand their skills and grow within the company.

“Apprenticeships play a vital role in shaping our future workforce, and it is encouraging to see those efforts acknowledged at a national level. Our apprenticeship scheme is focused on giving people the opportunity to gain skills, qualifications and experience that puts them on the road to a rewarding career within the automotive sector.

“Apprenticeships bring fresh perspectives and energy into the organisation, while also supporting colleagues to progress and build long-term careers. The breadth of programmes we offer ensures people can develop in a wide range of roles, from technical specialisms through to leadership pathways.

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“In fact, we have a number of colleagues who started on our Degree Apprenticeship programme over recent years who have already developed into management level roles across the Group. We are confident that there will be many more over the coming years.”

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Will China’s oil appetite be enough to support prices?

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Will China’s oil appetite be enough to support prices?

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The AI Capex Bill Comes Due

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The AI Capex Bill Comes Due

The AI Capex Bill Comes Due

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Xerox and 4 More Stocks See Action From Activist Investors

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Pearson, Appian, WEX, and More Stocks See Action From Activist Investors

Xerox and 4 More Stocks See Action From Activist Investors

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Is Inflation Ebbing? Not According to This Business Ratio

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The End of Tariffs? Not a Chance, These Economists Say

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Microsoft Is a Good Long-Term Bet

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Robotics Could Be a Boon for the Elderly

Microsoft Is a Good Long-Term Bet

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Why Paper Stocks Were the S&P 500’s Top Performers Today

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Why Paper Stocks Were the S&P 500’s Top Performers Today

Why Paper Stocks Were the S&P 500’s Top Performers Today

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Microsoft: One Of The Best Buying Opportunities In Big Tech (NASDAQ:MSFT)

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Microsoft: One Of The Best Buying Opportunities In Big Tech (NASDAQ:MSFT)

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Passage Research focuses on identifying variant perception through a blend of fundamental analysis and alternative data. The research process combines detailed financial modeling with real-time datasets to underwrite earnings power, margin durability, and forward expectations.The author has spent over a decade on Wall Street, most recently spending the last five years working in the hedge fund industry as an analyst. Typical coverage spans consumer, TMT, industrials and special situations, with an emphasis on asymmetric risk/reward and catalyst-driven opportunities.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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ServiceNow: I’m Doubling Down On Strong Buy – Cheaply Valued SaaS Winner (NYSE:NOW)

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VVR: Avoid This Floating-Rate Fund For The Time Being (NYSE:VVR)

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I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NOW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Stocks to Watch: Bank of America, Intel, SAP, Oracle

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Stocks to Watch: Bank of America, Intel, SAP, Oracle

Stocks to Watch: Bank of America, Intel, SAP, Oracle

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