THE POINT | India’s big corporate bond push

To achieve its Viksit Bharat 2047 vision, India needs massive long-term capital to fund infrastructure, climate action, manufacturing and urban growth. The financial system is currently over-dependent on banks and financial institutions. To deepen India’s corporate bond market, Union Budget FY27 has proposed measures such as market-making framework, bond index derivatives, and total return swaps

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STEADY GROWTH, LIMITED DEPTH
India’s corporate bond market has expanded steadily but remains relatively shallow

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A SMALL SLICE

India’s bond market is dominated by government securities. This reflects limited corporate participation and bank-centric financing structure

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FINANCIALINSTITUTIONSDOMINATE

Even the small corporate bond market is skewed towards NBFCs and other financial institutions, which account for over 72% of issuances

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FPI FLOWS MATTER

The recent shift towards debt inflows, even as equity flows remain volatile, reflects rising interest in Indian fixed-income assets

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KEY MEASURES

What the budget is fixing