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Informist, Friday, Feb. 27, 2026

 

--PM Modi: India econ showing exceptional resilience, at important cusp now 

--PM Modi:Have to up AI, blockchain, data analytics use to implement reforms 

--CONTEXT: Comments by PM Modi in a post-Budget webinar 

--PM Modi: Working on strengthening bond mkt for long-term financing 

--PM Modi on boosting bond market: Have to bring in new instruments 

--PM Modi on boosting bond market: Need to deepen liquidity 

 

NEW DELHI – The government is working to strengthen India's bond market to improve long-term financing needs, Prime Minister Narendra Modi said Friday. "Have to see bond market reforms as enablers of long-term growth," Modi said in a post-Budget webinar. 

 

"Have to ensure predictability, deepen liquidity, bring new instruments, and have to bring effective risk management measures," the prime minister said. 

 

While Modi did not specifically mention the corporate bond market, Finance Minister Nirmala Sitharaman – in her ninth Budget speech on Feb. 1 – had announced introduction of a market-making framework with suitable access to funds and derivatives on corporate bond indices, as well as total return swaps on corporate bonds.  

 

The Economic Survey for 2025-26 (Apr-Mar) had also pitched for strengthening India's long-term capital markets to finance sustained growth. It had highlighted that corporate bond markets remain shallow and illiquid, dominated by top-rated issuers, while securitisation is limited and municipal bonds are underdeveloped. Pension and insurance funds also remain conservative investors due to regulatory and cultural inertia.

 

In volume terms, India's corporate bond market has showed strong growth, with outstanding issuances increasing to INR 53.6 trillion in FY25 from INR 17.5 trillion in FY15, growing with an annual rate of approximately 12%. In FY25, the highest-ever fresh issuances were recorded, totalling INR 9.9 trillion. In FY26, the debt market accounted for over 63% of total resource mobilisation from the primary market in Apr-Dec. Private placements accounted for over 99% of total resources mobilised through the bond market, and remained the preferred mode.

 

Despite the recent progress, a significant potential remains untapped in the country compared to global peers. South Korea's corporate bond market is 79% of its GDP, it is 54% of its GDP in Malaysia, and 38% in China, while India's corporate bond market remains underdeveloped, accounting for around 16-17% of GDP.

 

According to Modi, reforms to the bond market will help in attracting sustained foreign capital. In the course of the webinar, "I hope industry and stakeholders will give suggestions based on global best practices for foreign investment framework and bond market strengthening," he said. 

 

The prime minister also said that the announcement of reforms alone is not enough and the government must ensure that their implementation is carried out effectively. Artificial intelligence, blockchain technology, and data analytics must be used to ensure reforms are implemented, he said. India is currently at an important cusp and is showing exceptional resilience, and reforms will help achieve its goal of becoming a developed nation by 2047, Modi said.  End

 

Reported by Priyasmita Dutta

Edited by Vandana Hingorani

 

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