NSE Chief Emphasizes Need for Growth in India's Corporate Bond Market
India's bond market must grow for Viksit Bharat goal: NSE chief
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Ashish Kumar Chauhan, CEO of the National Stock Exchange, highlighted the necessity for India's corporate bond market to expand significantly to support the Viksit Bharat 2047 initiative. He noted that while retail participation is rising, foreign investment remains low, and structural challenges persist in the market.
- 01India's corporate bond market has grown to ₹59.1 lakh crore, but needs to double to meet financing needs.
- 02Retail investors now make up 77% of total trade counts in the bond market, signaling increased democratization.
- 03Only 1.5% of total issuance volume comes from public issues, indicating a heavy reliance on private placements.
- 04Foreign portfolio investor participation is limited, with only 15% of the permissible limit utilized.
- 05Chauhan called for reforms to address operational complexities and improve market liquidity.
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Ashish Kumar Chauhan, Managing Director and CEO of the National Stock Exchange (NSE), emphasized the critical need for the growth of India's corporate bond market to achieve the goals of Viksit Bharat 2047. Speaking at the CareEdge Debt Market Summit 2026, he pointed out that while the market has grown to ₹59.1 lakh crore, it must double to meet the long-term financing requirements projected by NITI Aayog. Retail participation has surged, with individuals now accounting for 77% of trades, driven by digital platforms and lower investment thresholds. However, Chauhan expressed concern over the dominance of private placements, which make up 98.5% of issuance volume, and the low foreign investor participation, which stands at only 15% of the allowable limit. He called for coordinated policy reforms to enhance market accessibility and liquidity, citing recent government and regulatory initiatives aimed at improving the corporate bond landscape.
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The growth of India's corporate bond market is crucial for financing infrastructure and development projects, impacting economic growth.
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