How can India’s journey toward Viksit Bharat benefit from a diversified financial ecosystem?
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Synopsis
India's vision for a Viksit Bharat hinges on a strong financial ecosystem. NITI Aayog CEO B.V.R. Subrahmanyam highlights the importance of a robust corporate bond market in achieving long-term capital mobilization. This report outlines key strategies for enhancing market efficiency and participation, crucial for sustainable growth and infrastructure financing.
Key Takeaways
- Need for a diversified financial ecosystem.
- Importance of a robust corporate bond market.
- Opportunities for infrastructure financing.
- Challenges to market depth and investor diversity.
- Strategic reforms needed for efficient capital mobilization.
New Delhi, Dec 11 (NationPress) The path towards a Viksit Bharat vision necessitates a strong and varied financial ecosystem that can mobilize substantial long-term capital, stated NITI Aayog CEO B.V.R. Subrahmanyam on Thursday.
During the release of a report titled “Deepening the Corporate Bond Market in India,” the CEO emphasized that this document highlights the critical role a more profound and effective corporate bond market plays in facilitating this transition by enhancing market access, augmenting liquidity, and bolstering investor engagement.
Not only does the report provide a detailed overview of India’s corporate bond market landscape, but it also presents a reform-oriented strategy aimed at creating a more resilient, inclusive bond market that can meet India’s long-term investment needs.
“The report features a comparative assessment with international markets, identifies structural deficiencies, and proposes targeted suggestions to improve legal, regulatory, and market infrastructure frameworks,” an official release noted.
A robust and dynamic corporate bond market is crucial for attracting long-term, affordable financing that India requires to achieve its developmental objectives, it further stated.
By broadening funding sources beyond traditional banking channels, corporate bonds facilitate more effective risk-sharing, enhance financial stability, and support productive sectors with consistent, market-driven capital.
As India moves closer to its broader aspirations, a well-operating bond market emerges as a vital component for sustaining investment and fostering long-term growth.
While the report indicates that the market has grown over the last decade with increased outstanding volumes, enhanced regulatory frameworks, and rising investor interest, challenges remain regarding limited market depth, concentrated investor profiles, and modest activity in the secondary market.
India's corporate bond market possesses significant untapped potential for further development, it emphasized.
The report pointed out the opportunity for the corporate bond market to significantly enhance its role in mobilizing capital for infrastructure, MSMEs, green finance, and emerging sectors.
Point of View
The insights provided by NITI Aayog underscore the importance of a diversified financial ecosystem in India. The emphasis on a deeper corporate bond market reflects a strategic approach to boosting capital mobilization for key sectors, which is essential for sustainable economic growth.
NationPress
11/12/2025
Frequently Asked Questions
What is the vision of Viksit Bharat?
Viksit Bharat refers to India's goal of achieving a developed economy with sustainable growth and inclusive development.
What role does the corporate bond market play?
The corporate bond market is vital for mobilizing long-term, low-cost financing necessary for infrastructure and economic development.
What are the challenges facing India's corporate bond market?
Challenges include limited market depth, concentrated investor profiles, and modest secondary-market activity.
How can the corporate bond market be strengthened?
Strengthening requires reforms in legal, regulatory, and market infrastructure frameworks to enhance efficiency and participation.
What opportunities exist for the corporate bond market?
There are significant opportunities in mobilizing capital for infrastructure, MSMEs, green finance, and emerging sectors.
