Building a robust corporate bond market key to India’s growth: SEBI, PFRDA, IFSCA, and ASSOCHAM officials

India’s corporate bond market is emerging as a critical pillar for financing the nation’s ambitious growth plans, with regulators and industry experts stressing the need for deeper, more liquid, and inclusive markets, said the release.

Speaking at Assocham’s 8th Annual Conclave on the Corporate Bond Market, Ananth Narayan G, Whole Time Member, SEBI, emphasized that a strong corporate bond market should complement India’s equity market, offering efficiency, transparency, and long-term stability.

“"We must also nurture and spread awareness about alternative asset classes such as REITs, Munis (municipal bonds) and commodities and build a balanced financing ecosystem worthy of India's growth ambitions,” he said.

The SEBI official noted the need for cultural and structural development within the corporate bond market. Corporate bond indices, he said, are on the horizon to facilitate derivative trading and broader investor participation, while municipal bonds—which have seen only 16 issuances aggregating ₹3,100 crore since 2017—remain an area with significant growth potential.

Pension funds as a growth driver

S. Ramann, Chairperson, Pension Fund Regulatory and Development Authority (PFRDA), underscored the pivotal role of pension and insurance funds in funding long-term infrastructure projects.

Pension funds currently hold about ₹3.5 trillion in corporate debt, with roughly 70% allocated to sectors such as energy, transport, water, and social infrastructure, reflecting a natural alignment between retirement savings and national development needs.

Drawing comparisons with countries like South Korea and Brazil, Mr. Ramann highlighted that encouraging pension fund participation has helped deepen bond markets overseas, a strategy India is actively pursuing.

Retail participation and digital platforms

Pradeep Ramakrishnan, Executive Director, International Financial Services Centres Authority (IFSCA), noted that 40 online bond platforms have enhanced retail participation, helping break the market’s historic shallowness.

GIFT City has emerged as a hub for corporate and international bond issuances, raising nearly $70 billion, including $16–17 billion in sustainable finance bonds, underscoring India’s growing prominence in global capital markets.

ASSOCHAM calls for a deeper, inclusive market

Nipa Sheth, Chairperson, ASSOCHAM National Council on Corporate Bond Market, highlighted the market’s importance for financing India’s infrastructure needs, projected at over ₹143 lakh crore.

She stressed that broadening retail participation, simplifying digital access, improving governance, and developing a vibrant secondary market are crucial for a resilient and robust corporate bond ecosystem.

She noted that while India’s equity markets rank among the top globally, its debt markets lag behind, but ongoing reforms and international recognition could help attract more foreign investors.

Corporate bonds as a growth engine

Aditi Mittal, Co-Chairperson, ASSOCHAM National Council on Corporate Bond Market, highlighted that India’s debt market stands at $2.78 trillion, with corporate bonds contributing $627 billion (22%), a 13.42% increase from FY 2023-24.

The market is witnessing a steady pipeline of issuances, with over 3,237 corporates issuing bonds in 2025 year-to-date and traded volumes reaching ₹17.1 lakh crore ($200 billion) in 2024-25, up 24.5% from the previous year.

Early FY 2025-26 data shows 8.47 lakh crore in traded volumes, a 48.5% growth, reflecting increasing participation from non-traditional investors.

Ms. Mittal emphasized that the corporate bond market is more than a financial segment; it is a growth engine capable of channeling household savings into productive investments, funding business expansion, and supporting Viksit Bharat 2047.

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