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Corporate Bond Market: NITI Aayog said in its recent report that corporate bonds are growing rapidly as an investment option in the country. It is estimated that by the year 2030 it may increase to Rs 12 lakh crore.
New Delhi. Amidst the increasing investment in mutual funds, real estate and shares, another investment option is increasing rapidly in India. NITI Aayog has even said that by the year 2030, this investment option can cross Rs 12 lakh crore. He also said that structural changes will have to be made to promote it. If this happens then annual growth of 12 percent can easily be achieved.
NITI Aayog said in its recent report that the country’s corporate bond market is likely to reach Rs 10 to 12 lakh crore by the year 2030. This will require some structural reforms and institutional capacity building. NITI Aayog’s report on the corporate bond market has said that there has been significant growth in India’s corporate bond market in the last decade.
Sharp rise seen in 10 years
NITI Aayog said in its report that the corporate bond market was Rs 1.75 lakh crore in the financial year 2014-15, which increased to Rs 5.36 lakh crore in 2024-25. There has been an annual increase of about 12 percent. The report also claimed that with continued focus on policies, technological innovation and uniform regulation, India’s corporate bond market has the potential to grow to more than Rs 10 to 12 lakh crore by 2030.
Will become a big part of the financial system
The NITI Aayog report also said that with this increase, it will become an important pillar of India’s financial system, which will channel domestic and global capital towards the productive sector and support the country’s long-term growth for a developed India 2047. NITI Aayog Chief Executive Officer (CEO) BVR Subramanian said that in the last 10 years, India has made considerable progress in enhancing its bond market infrastructure and regulatory framework. However, compared to other countries of the world, India has not yet fully utilized its huge potential.
This market is 16 percent of GDP
According to NITI Aayog, India’s bond market has now reached about 15 to 16 percent of GDP, which is a significant improvement. However, this is still very low compared to countries like South Korea, Malaysia or China. To strengthen the corporate bond market, there is a need for continuous improvement in market infrastructure, risk management measures, investment diversification and credit enhancement methods. The CEO of NITI Aayog said that further strengthening these reforms will not only increase investment in the private sector, but will also link financial development with the strategic goals of inclusive, sustainable and technology-led growth.
