$2.69 trillion and counting: How India’s bond market is powering a $8T future
capital formation is expected to be driven by the expanding bond markets, currently valued at $2.69 trillion, according to analysts at IndiaBonds.com.
Data compiled by IndiaBonds.com, sourced from the Clearing Corporation of India (CCIL) and the Securities and Exchange Board of India (SEBI), reveals that the Indian Bond Market stood at US$2.69 trillion at the end of December 2024, with the corporate bond market surpassing US$602 billion.
The momentum in corporate bonds has been outpacing other segments, reflecting a shift toward debt-driven financing as businesses scale up operations.
In the first nine months of FY 2024-25, the total stock of outstanding bonds grew by US$ 100 billion, factoring in a 2.7% depreciation of the Indian Rupee. In INR terms, the overall bond market expanded by 6.5%, while the corporate bond market saw a stronger growth of 9%.
However, despite this progress, India’s bond markets still lag behind global peers, standing at 0.65x the equity market capitalization, compared to 1.2-2.0x in developed economies.
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With recent volatility in equity markets, portfolio diversification via bonds has gained prominence, as reflected in increased investor participation this quarter. Analysts at IndiaBonds.com note that this trend underscores the growing demand for fixed-income instruments as a key capital-raising avenue for India’s ambitious economic expansion.
As the nation advances toward its multi-trillion-dollar goal,
