India’s corporate bond mkt poise to exceed `100-trn by 2030: NITI Aayog

India’s corporate bond market has the potential to exceed Rs 100–120 trillion by 2030, provided some deeper structural reforms and institutional capacity-building are undertaken, according to a report.

Over the past decade, India’s corporate bond market has expanded significantly, with outstanding issuances rising from Rs 17.5 trillion in FY2015 to Rs 53.6 trillion in FY2025, recording an annual growth rate of nearly 12 per cent, a report on ‘deepening the corporate bond market in India’ released by Niti Aayog said.

“With continued policy focus, technological innovation, and harmonised regulation, India’s corporate bond market has the potential to exceed Rs 100–120 trillion by 2030, evolving into a key pillar of India’s financial system, one that channels domestic and global capital towards productive sectors and underpins the country’s long-term growth trajectory toward Viksit Bharat 2047,” it said.

Over the past decade, India has made commendable strides in expanding its debt market infrastructure and regulatory framework, but compared to global peers, India has not yet fully tapped its vast potential, Niti Aayog CEO BVR Subrahmanyam said while releasing the report.

The market now accounts for around 15–16 per cent of GDP, a considerable improvement, though still well below the levels seen in countries like South Korea, Malaysia, or China. “Strengthening the corporate bond market demands continued reform in market infrastructure, risk management tools, investor diversification, and credit enhancement mechanisms.

Deepening these reforms will not only catalyse private sector investment but also align financial development with the nation’s strategic goals of inclusive, sustainable, and technology-driven growth,” he said. To expand the market, the report said there is a need for deeper structural reforms and institutional capacity-building.

Regulatory frameworks will evolve to support a unified architecture, more effective resolution mechanisms, and a conducive environment for innovation, it added. Market infrastructure will be upgraded for scale and resilience, enabling digital transformation across issuance, trading, and settlement, it said, adding that the issuer base will be broadened through the promotion of new asset classes, while product innovation will be institutionalised to introduce sustainable, inclusive, and long-term investment options.

Investor participation will be expanded through targeted incentives, greater integration of foreign investors, and improved transparency, it said. Complementing these efforts, it said, technological advancements will enhance data-driven decision-making and market intelligence, helping create a more efficient, transparent, and inclusive bond market.