India's corporate debt market is structurally ill-equipped to finance the country's next phase of economic expansion, according to a new report by Deloitte.
The consultancy argues that without significant reforms to improve liquidity, price discovery, and investor participation, the fixed-income sector will continue to lag behind the rapid growth seen in banking and equity markets.
The assessment highlights a persistent imbalance in India's capital markets.
While the banking system and stock exchanges have deepened considerably, the debt market remains shallow, limiting its ability to provide long-term capital for infrastructure and industrial projects.
Deloitte's findings suggest that current market mechanics are insufficient to support the scale of financing required for sustained macroeconomic growth.
This structural deficit has been noted in previous market analyses.