India’s corporate bond market must grow nearly seven times its current size if the country is to meet its long-term financing demands and reduce its heavy reliance on bank-led debt, NITI Aayog CEO B.V.R. Subrahmanyam said on Wednesday. He was speaking at the release of a comprehensive report titled Deepening the Corporate Bond Market, which examines the structural barriers holding back the sector.

Subrahmanyam drew a sharp contrast between India’s equity markets and its underdeveloped bond ecosystem. While India’s equity markets are globally competitive, the corporate bond market is only one-seventh their size. By comparison, the United States has a bond market larger than its equity market. India’s corporate bond market stands at roughly $650 billion, whereas the United Kingdom—an econom

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