India, Jan. 30 -- In March 2025, the size of India's overall bond market was approximately $2.78 trillion. Out of this, Government bonds accounted for $2.16 trillion, and the remaining $626 billion was corporate bonds. India's bond market has been growing steadily over the years, with the growth rate accelerating in the last couple of years.

According to NITI Aayog's "Deepening the Corporate Bond Market in India" Report (December 2025), India's corporate bond market has grown 12% annually in the last decade (FY 2015 to 2025). In this article, we will examine what is leading to the growth of India's bond market and attracting retail and foreign investors.

In the earlier section, we saw that India's overall bond market is expanding rapidl...