Archive · 18 Sep 2025
Foreign Investment Drives Historic Growth in India's Bond Market
India's bond market is booming, reaching $2.69 trillion, thanks to a wave of foreign investment.
This growth is driven by factors like lower interest rates set by India's central bank, which makes bonds attractive.
Foreign investors are pouring money into Indian bonds, especially corporate bonds.
This is in part because India was added to a global bond index.
Overall, this means more money flowing into India's economy and a stronger financial market.
India's bond market reached ₹238 trillion by March 2025, with 10.2% growth.
Foreign investment in corporate bonds nearly tripled in FY2025.
RBI implemented 100 basis points of repo rate cuts, influencing market conditions.
Corporate bonds are a major growth driver, with a 13.4% increase in FY2025.
Index inclusion in global bond indices has increased foreign investment.
- Who
- Foreign investors
- What
- Are reshaping India's bond market through increased participation
- When
- FY2025 and beyond
- Where
- India's bond market
- Why
- Fueled by index inclusion, RBI policies, and favorable economic conditions
- Bond Market Size (March 2025)
- ₹238 trillion ($2.69 trillion)
- FY2025 Market Growth
- 10.2%
- Corporate Bond Market Size
- ₹53.64 trillion
- Corporate Bond Growth (FY2025)
- 13.4%
- Foreign Investment in Corporate Bonds (FY2025)
- ₹12,382 crore
- RBI Repo Rate Cuts (Feb-June 2025)
- 100 basis points to 5.50%
- India's GDP growth forecast (FY2025-26)
- 6.5-7%
- Retail Bond Transactions Growth (FY2024-25)
- 327%
