How India’s Bond Market Evolved Over the Last 10 Budgets

Bonds Booming in  India

The total outstanding amount of corporate bonds increased from Rs 16.49 lakh crore to Rs 44.16 lakh crore.

The bond market in India experienced various changes and the market size increased. Click to know more.

What Changed in the Last Decade?

Golden Glory in  2015-16

The government introduced tax-free infrastructure bonds for road, rail, & irrigation projects. Issued by government entities, these secure, redeemable debentures raise funds for infrastructure development. 

Set up International Finance Service Centres 

IFSC aimed to repatriate financial services by Indian corporations, previously conducted in offshore centers, & facilitate easier global market access for Indian corporate entities.

RBI brought a separate channel, namely ‘Fully Accessible Route’ (FAR), to enable non-residents to invest in specified government bonds with effect from April 1, 2020.

Fully Accessible Route

Green Bonds

As part of the 2022-23 Union Budget, the govt introduced Sovereign Green Bonds (SGrB) to raise funds for developing green infrastructure, benefiting projects aimed at reducing carbon intensity.

In Budget 2023-24, on Feb 1, 2023, it was announced that cities will be incentivised to improve their creditworthiness to issue municipal bonds.

Municipal Bonds

We might get a few bonds offering tax benefits, a conducive environment for non-resident Indian and foreign investors, and achieving the fiscal deficit target.

What to Expect in Budget 2024-25?