NITI Aayog Releases Report To Strengthen India’s Corporate Bond Market

NITI Aayog has unveiled its report “Deepening the Corporate Bond Market in India”, highlighting the need for a robust financial ecosystem capable of mobilising long-term capital. Released by CEO B.V.R. Subrahmanyam in New Delhi, the document lays out a strategic roadmap to expand market access, improve liquidity and enhance investor participation.

Rationale For A Strong Bond Market

The report stresses that a vibrant corporate bond market is essential for financing India’s developmental aspirations. By diversifying funding sources beyond bank credit, corporate bonds support efficient risk sharing and provide stable, market-based capital for productive sectors. As India moves toward its Viksit Bharat vision, long-term financing becomes a critical pillar for sustained economic growth.

Current Landscape And Structural Challenges

While regulatory reforms and increasing investor interest have expanded the market in recent years, depth remains limited. Constraints include concentrated investor profiles, modest secondary-market activity and restricted access for mid-size issuers. The report notes that, despite growth in outstanding volumes, India’s bond market trails major global economies in scale and diversification.

Reform Roadmap And Global Benchmarking

Drawing on international experience, the report proposes reforms across legal, regulatory and market infrastructure frameworks. Recommendations include credit-enhanced products, long-tenor and sustainability-linked instruments, deeper market-making and repo facilities and improved data transparency. It also highlights opportunities in financing infrastructure, MSMEs and green transition projects.

Exam Oriented Facts

• Report titled “Deepening the Corporate Bond Market in India” released on 11 December 2025.
• CEO NITI Aayog emphasised the role of bond markets in achieving Viksit Bharat @2047.
• Key gaps identified: limited depth, concentrated investors, weak secondary-market liquidity.
• Reforms proposed include regulatory strengthening, diversified products and digital innovations.

Way Forward For India’s Capital Markets

The report underscores the need to broaden investor participation, support lower-rated issuers and modernise infrastructure through digital tools such as tokenised bonds and integrated data platforms. Officials emphasised that deepening the bond market will reduce reliance on banks, enhance capital allocation and mobilise private finance for India’s long-term development goals.