Introduction
The inclusion of India and Greece in the iBoxx Global Government Bond Index marks a shift in the landscape of global bond markets. This decision highlights improvements in the sovereign credit ratings and market conditions of both countries.
The addition of India and Greece is expected to enhance the index’s overall composition, increasing its size by approximately USD 600 billion, or 1.4%, based on Sept. 30, 2025, data. This change would result in a small increase in the index’s average annual yield and coupon, while annual modified duration is expected to decline slightly. Once fully incorporated, India and Greece are projected to represent about 1.20% and 0.23% of the index, respectively, contributing to the diversification of the index.
Why Are India and Greece Being Added to the Index?
The iBoxx Global Government Index Series follows a rules-based methodology, governed by the iBoxx Global Government Annual Country Eligibility Review. Country inclusion or exclusion is determined based on sovereign credit rating, bond market size and capital controls assessment, which in turn is underpinned by GEMLOC Investability Indicator data. The GEMLOC Investability Indicator assesses each country’s bond market by a set of six broad indicators—capital controls, market liquidity, regulatory quality, creditor rights, market infrastructure, taxation and domestic investor base. The 2025 Eligibility Review resulted in India and Greece becoming eligible for the iBoxx Global Government Overall Indices. Nevertheless, S&P DJI’s customization capabilities mean that index users can choose to exclude certain markets in the index if they are not currently ready to add these new markets to their strategies.
India’s inclusion in the index was driven by positive developments in the country’s capital controls, which let to improvements in its GEMLOC score. Despite being rated investment grade since 2006, the Indian government has traditionally imposed quota requirements and holding restrictions for foreign investors. Over the years, India has pursued a strategy of gradual, managed capital-account liberalization. The Fully Accessible Route (FAR) was formally launched in March 2020, where select bonds were designated as fully open to all foreign investors. The scheme gradually expanded, and in 2025, India further eased regulations for FAR investors by creating a simplified category with lighter know-your-client (KYC) policies, fewer disclosures and relaxed ownership rules.
The Greek sovereign credit rating is investment grade across the major credit rating agencies, with Moody’s being the latest rating agency to upgrade the sovereign to Baa3 on March 14, 2025. Other rating agencies have affirmed Greece’s credit rating with a stable outlook, reflecting the country’s solid economic and fiscal performance amid high external and government debt levels. The rating upgrade marks the country’s return to investment grade, following downgrades in 2010, when the country was also excluded from the index. From 2010 to 2018, Greece’s economy was constrained by a sovereign debt crisis, forcing the country onto a recovery journey, boosted by structural reforms, EU recovery funds and a resurgent tourism sector. Future economic prospects appear to be solid, reinforced by a budgetary surplus and improved debt sustainability.
How Will the New Countries Be Included?
Based on comparable index weights as of September 2025, India and Greece are expected to represent approximately 1.20% and 0.23% of the index, respectively, once fully included. However, under the current methodology, the maximum monthly weight adjustment for a country entering or exiting the index is limited to 1.0% until full inclusion or removal is reached. Consequently, India will enter the index with an initial weight of 1.0% at the end of January 2026, reaching its full weight by the rebalancing at the end of February 2026.
