Bond Market
Growth Trend
Understand the growth of Indian bond market
Consistent growth with accelerating pace: Over the past decade, the bond market has grown with in India has grown at a CAGR of ~25% with growth in the last 4 years at an even faster rate. Listed bond issuance in 2024 exceeded INR 9.5 lakh crore (US$ 110bn).
Non-PSU issuers dominating the market: Non-PSU issuances of ~INR4.9 lakh crore (US$56bn) have surged ahead of PSU issuances contrary to popular belief. Strong increasing trend in private sector entities tapping domestic debt capital market underlines the growing confidence among institutional and retail investors. As new issuers enter the market, the share of Non-PSU issuances is set to rise further.
Post Covid era: Growth in bond issuance was more prominent post 2021 when both PSU and Non-PSU entities frequenting the capital markets. IL&FS crisis highlighted the need for issuers to diversify their sources of capital. Low interest rate environment globally ensured that search for yield led to widespread availability of capital.
