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India Eyes Bond Market Boom: Roadmap to 2030 & 2047
15 Dec
Summary
- NITI Aayog outlines a plan to deepen India's corporate bond market by 2030 and 2047.
- Challenges include a shallow secondary market and limited investor diversity.
- Proposed reforms focus on infrastructure, investor base expansion, and regulatory simplification.
NITI Aayog has introduced a comprehensive strategy to enhance India's corporate bond market, setting ambitious goals for 2030 and 2047 under the Viksit Bharat vision. The report highlights the current market's size at 16% of GDP and proposes measures to substantially increase this share.
The roadmap tackles significant hurdles like low liquidity and price transparency in the secondary market, alongside an over-reliance on banks for investment. Limited participation from MSMEs, retail investors, and foreign portfolio investors are also critical issues identified.
To foster growth, NITI Aayog suggests strengthening market infrastructure, introducing incentives for new investors, unifying regulatory authorities, and innovating financial instruments. Enhancing debt recovery mechanisms is also a key component of the proposed reforms.
