Archive · 13 Dec 2025
NITI Aayog Advocates for Corporate Bond Market Growth
NITI Aayog, a government think tank, says India needs a bigger and better corporate bond market.
This market helps companies get money for long-term projects like building roads and houses.
Right now, India's bond market is small compared to other countries.
The report says there are many problems, like slow processes, not enough options for regular people to invest, and not enough liquidity.
NITI Aayog wants to fix these issues over six years by making rules better, improving technology, and adding new types of bonds.
This will help more companies, especially small ones, get the money they need.
The goal is to make the market grow to Rs 100-120 trillion by 2030 and support India's long-term growth.
NITI Aayog calls for developing the corporate bond market to support long-term financing needs and achieve a $30 trillion economy by 2047.
India's corporate bond market is $650 billion (Rs 53.6 trillion), much smaller than global peers, and accounts for 15-16% of GDP.
Only one-sixth of corporate debt in India is raised through bonds, with large companies dominating the market and minimal retail participation.
Systemic gaps include regulatory overlaps, limited liquidity, high transaction costs, and a lack of investor appetite for lower-rated securities.
NITI Aayog proposes a six-year roadmap to improve market infrastructure, regulatory coordination, and introduce new bond instruments to expand the market to Rs 100-120 trillion by 2030.
- Who
- NITI Aayog, the Central Government's policy think tank
- What
- Called for the development of the corporate bond market in India
- When
- Report released on December 11, 2025
- Where
- India
- Why
- To meet long-term funding requirements, reduce dependency on bank-led debt, and achieve the $30 trillion economy target by 2047
Proponents of Market Development
Critics of Current Market Structure
Market Potential
Proponents of Market Development
The corporate bond market has significant potential to grow to Rs 100-120 trillion by 2030 with structural reforms and institutional capacity-building.
Critics of Current Market Structure
The market currently faces structural frictions like regulatory overlaps, limited liquidity, and high transaction costs that impede its full potential.
Reform Implementation
Proponents of Market Development
Proponents argue that phased and coordinated reforms will address short-term frictions and build institutional depth for sustainable long-term development.
Critics of Current Market Structure
Critics point out that regulatory overlaps and procedural delays discourage broader participation and need immediate attention.
- Organization
- NITI Aayog
- Report Release Date
- December 11, 2025
- Current Corporate Bond Market Size
- $650 billion (Rs 53.6 trillion)
- Percentage of Corporate Debt via Bonds
- One-sixth (15-16% of GDP)
- Dominant Bond Ratings
- AAA and AA (94%)
- Bond Issuance Timeline
- 20 to 60 days
- Retail Participation in Bonds
- Minimal (2%)
- Projected Market Size by 2030
- Rs 100-120 trillion
Sources
NITI calls for developing Corporate Bond Market to reduce dependency on bank led debt
Niti Aayog pushes plan to double corporate bond market to Rs 100–120 lakh crore by 2030
India Needs To Overcome Bottlenecks To Increase Both Quality & Quantity Of Workforce Participation & Labour Productivity: NCAER Report
India's Corporate Bond Market Has Potential To Exceed ₹120 Trillion By 2030: Report
NSE’s Ashish Chauhan says India must build a strong bond market for long-term growth
Structural reforms have helped India rebound from fragile five to top four economies, says Amitabh Kant
