India’s cities need a lot of money. Roads, water supply, drainage, public transport, building and maintaining urban infrastructure require consistent, large-scale funding. One of the ways cities raise this money is by issuing municipal bonds.<\/p>\n\n\n\n
When a city issues a municipal bond, it borrows from investors and promises to repay with interest. For investors, it’s a way to earn fixed returns. Some of these bonds are also tax-free, which makes them look even more attractive at first glance.<\/p>\n\n\n\n
So should retail investors consider them? Here’s what the market actually looks like in 2026.<\/p>\n\n\n\n