{"id":11662,"date":"2026-02-09T10:22:31","date_gmt":"2026-02-09T10:22:31","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=11662"},"modified":"2026-02-09T10:24:12","modified_gmt":"2026-02-09T10:24:12","slug":"how-niti-aayog-plans-to-strengthen-indias-corporate-bond-market","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/how-niti-aayog-plans-to-strengthen-indias-corporate-bond-market\/","title":{"rendered":"How NITI Aayog Plans to Strengthen India\u2019s Corporate Bond Market?"},"content":{"rendered":"

India\u2019s corporate bond market has grown steadily over the past decade, but a closer look shows that it still plays a smaller role than it ideally should.<\/span><\/p>\n

According to NITI Aayog\u2019s own data, outstanding corporate bonds have risen from around \u20b917.5 trillion in FY2015 to about \u20b953.6 trillion in FY2025, an annual growth of nearly 12 percent.<\/span><\/p>\n

Even with this growth, corporate bonds make up roughly 14 -16 percent of India\u2019s GDP, which is much lower than levels seen in markets like South Korea (around 79 percent) or Malaysia (around 54 percent). Another way to see this is in absolute market share. India accounts for only about 3 percent of the global corporate bond market, whereas the U.S. and China together make up over half of it.<\/span><\/p>\n

One reason for this limited scale is that most bond issuance in India happens via private placements, which are usually accessible only to institutional investors and not easy for retail investors to access. In fact, about 96 percent of outstanding corporate bonds are held by institutions such as mutual funds, insurers, banks and pension funds.<\/span><\/p>\n

Retail participation remains quite low, even though regulators have reduced minimum investment sizes and introduced online platforms to improve access.<\/span><\/p>\n

In simple terms, while the corporate bond market in India exists and is growing, it still lags behind many global peers in depth, accessibility and retail involvement, which limits its effectiveness as a mainstream source of corporate funding.<\/span><\/p>\n

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