FTSE Russell Index to Add South Korean and Indian Bonds

In a significant move set to attract billions in foreign investment, South Korean and Indian government bonds will be added to FTSE Russell's global indices by 2025. South Korean government bonds will be included in the FTSE World Government Bond Index (WGBI), while Indian government bonds (IGBs) will join the Emerging Markets Government Bond Index (EMGBI), after years on the provider’s watchlist.

The inclusion of these bonds is expected to generate substantial capital inflows into their respective bond markets. For South Korea, government bonds will be added in November 2025, with the bonds projected to hold a 2.22% weight in the WGBI based on market value, making South Korea the ninth-largest bond issuer in the index. The U.S. remains the largest, with a weight of 40.39%, followed by Japan at 10.17% and China at 9.72%.

Similarly, Indian government bonds will be phased into the EMGBI and other regional Asian indices starting in September 2025, with a projected 9.35% weight, second only to China’s 57.85%.

What Does This Mean for Me?

The overhaul of South Korea’s financial infrastructure, including extended foreign exchange trading hours and improved settlement mechanisms, has played a key role in this inclusion. Analysts estimate that South Korean bonds could attract as much as €61 billion in foreign investment.

The inclusion of Indian bonds is part of the broader trend of global markets increasing exposure to India, as the country benefits from rapid economic growth and a thriving services sector. Tech giants like Apple moving manufacturing operations from China to India further boost India's global market presence.