New Delhi, March 19 -- Municipal bond issuances in India are expected to raise more than Rs 1,500 crore in the Financial Year (FY) 2025-FY2026, primarily driven by the Government's push, according to a report by ICRA.

The report added that the share of Green/pooled bonds is also likely to increase, led by a growing focus on Environmental, Social, and Governance (ESG) initiatives and enhancement in the credit profile of Urban Local Bodies (ULBs).

The municipal bond market in India has gained significant traction in recent years, especially since FY2018, largely due to fiscal incentives introduced by the Government of India (GoI).

Since FY2018, the total amount raised in municipal bonds has exceeded Rs 2,600 crore, a substantial increase...