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Informist, Friday, Nov. 28, 2025

--CEA: India needs strong debt capital mkts along with strong banking system 

--CONTEXT: CEA Nageswaran's comments at an event in Mumbai 

--CEA: Task is to enable easy access to markets for mid-sized corporates 

MUMBAI – Enabling capital market access for corporates which are not AAA rated and not very large in size is a task which remains to be tackled, V. Anantha Nageswaran, chief economic adviser to the government of India said here on Friday. "The task ahead is to enable mid-sized corporates, infrastructure SMEs (small and medium enterprises), supply chain firms and municipalities to access markets systematically and affordably," the chief economic adviser said at the Trust Group's India Debt Capital Market Summit.

Nageswaran also detailed the requirements to ensure that there is ample liquidity in the system. "A world-class debt market requires incredible domestic credit curve across ratings, larger free flow of government securities for better benchmark pricing, active market making to ensure liquidity even during stress, greater participation from pensions, provident funds and insurance, diverse instruments, securitisation, credit-enhanced bonds, municipal bonds, green and transition bonds, hybrid capital," he said.

A stronger capital market is essential for a healthier economy, Nageswaran said. "This matters for the nation and not just for the industry. A deeper receiving of debt market strengthens the entire economy. It reduces the cost of capital for industry, mobilises domestic savings more efficiently, relieves pressure on the banking system given the size of the country and its development and growth aspirations," he said. 

Nageswaran also said that there is a need to make capital markets more inclusive in India. "India will not build a deep debt market through regulation alone. Issuers, investors, arrangers, credit enhancers and rating agencies must act as market builders," he said.  End

Reported by Kabir Sharma and J. Navya Sruthi

Edited by Deepshikha Bhardwaj

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