In a recent statement, Finance Minister Nirmala Sitharaman praised the proactive approach taken by the Indian government in fostering the development of the corporate bond market. She highlighted the successful collaboration between the government and financial regulators, which has resulted in remarkable growth in the market over the past few years.
According to Sitharaman, the outstanding stock of corporate bonds has witnessed an astounding surge, increasing more than four-fold from Rs 10.51 lakh crore at the end of FY 2012 to an impressive Rs 42 lakh crore at the end of FY 2023. This exponential growth demonstrates the government’s commitment to promoting the corporate bond market as a crucial avenue for raising funds and stimulating economic activities.
The corporate bond market plays a vital role in India’s financial ecosystem, providing companies with a platform to raise long-term funds for their expansion, infrastructure development, and capital investment requirements. By facilitating access to diversified sources of funding, the market contributes significantly to fueling economic growth and job creation in the country.
Sitharaman emphasized that the government’s focused efforts to collaborate with financial regulators have been instrumental in this remarkable achievement. The partnership has led to the implementation of key reforms and policy initiatives, fostering a conducive environment for both issuers and investors in the corporate bond market.
Furthermore, the Finance Minister’s statement reflects the government’s commitment to further enhancing the efficiency and accessibility of the corporate bond market in the coming years. As India’s economy continues to grow and attract investment, a robust and well-regulated corporate bond market will play a pivotal role in supporting sustainable development and prosperity.
