NITI Aayog V-C: India's Corporate Bond Market Bottleneck Hinders Growth

• NITI Aayog V-C warns that India's underdeveloped corporate bond market could bottleneck long-term economic growth.
• India's corporate bond market is significantly smaller than its equity market, unlike global peers, leading to over-reliance on costlier bank funding.
• A robust corporate bond market is vital for India to achieve its $30 trillion economy goal by providing cost-effective, long-term financing.
• Challenges include structural constraints like investment limits for funds, dominance of high-rated issuances, and operational bottlenecks from overlapping regulations and extensive disclosures.
• NITI Aayog proposes a three-phase reform roadmap to deepen the market, focusing on strengthening laws, digital infrastructure, SME bonds, and risk management.

Why It Matters: India's economic growth hinges on developing its corporate bond market.