NITI Aayog CEO Shri B.V.R. Subrahmanyam released a detailed report titled “Deepening the Corporate Bond Market in India” on 11 December 2025 in New Delhi, in the presence of senior officials.
Speaking at the launch, Shri Subrahmanyam said that achieving the vision of Viksit Bharat requires a robust, diversified financial ecosystem capable of mobilising long-term capital at scale. A deeper and more efficient corporate bond market, he noted, will be essential for expanding market access, improving liquidity and strengthening investor participation.
Comprehensive roadmap for a stronger bond market
The report presents a full overview of India’s corporate bond landscape along with a reform-oriented roadmap for building a deeper, more resilient and inclusive market that can meet the country’s long-term financing needs. It provides:
-
A comparative analysis with global bond markets,
-
Identification of structural gaps, and
-
Targeted recommendations to enhance legal, regulatory and market infrastructure frameworks.
Why a deeper corporate bond market matters
India’s developmental goals require long-term, low-cost financing, especially for infrastructure, MSMEs, green and transition finance and emerging sectors. A vibrant corporate bond market helps:
-
Diversify funding sources beyond banks,
-
Enable more efficient risk-sharing,
-
Strengthen financial stability, and
-
Provide stable, market-based capital to productive sectors.
Although the corporate bond market has grown over the past decade—with higher outstanding volumes, improved regulatory frameworks and rising investor interest—it remains constrained by shallow depth, a narrow investor base and limited secondary-market liquidity. The report notes that India’s bond market still holds considerable untapped potential.
Key reform recommendations
Drawing on global experience, the report sets out a sequenced set of reforms, including:
-
Strengthening legal and regulatory oversight,
-
Improving transparency and market infrastructure,
-
Facilitating more issuance by mid-sized firms,
-
Broadening participation of insurance, pension and retail investors,
-
Expanding product offerings such as credit-enhanced bonds, long-tenor instruments and sustainability-linked products,
-
Enhancing liquidity through improved market-making and repo facilities,
-
Leveraging digital tools such as tokenised bonds and integrated data systems.
CEO’s concluding remarks
Shri Subrahmanyam congratulated the team for producing an analytically rich study mapping the evolution of India’s corporate bond ecosystem. He emphasised that deepening the bond market is essential to reducing over-reliance on bank credit, improving capital allocation and mobilising private capital for India’s development priorities.
He added that a stronger, well-diversified corporate bond market will be crucial for providing long-term, stable and affordable financing, helping India advance towards its Viksit Bharat @2047 vision. The report, he said, offers a practical blueprint for enhancing transparency, widening investor participation, supporting lower-rated issuers and modernising market infrastructure in line with global standards.