India's equity market has grown rapidly post-pandemic, but its debt market remains underdeveloped. Corporate bond issuances in India ...
India's equity market has grown rapidly post-pandemic, but its debt market remains underdeveloped.
Corporate bond issuances in India from April to December 2024 amounted to 7.3 lakh crore rupees, averaging 0.8 lakh crore per month.
The size of India's corporate bond market is only 18% of GDP, much smaller compared to 80% in Korea and 36% in China.
Most funds raised are through private placements, limiting retail investor participation.
Borrowing is mainly done by firms with high credit ratings.
The Survey suggests addressing issues like entry costs, information asymmetry, and lack of a secondary market to improve liquidity in corporate bonds.
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