India's corporate debt market continues to lag behind the banking and equity sectors in terms of growth and depth, according to a recent Market Pulse report from the National Stock Exchange (NSE).
The data underscores a persistent structural preference among Indian companies for bank financing over capital market issuance, keeping the corporate bond segment modest relative to the broader economy.
This dynamic persists even as foreign investor appetite for Indian fixed income has strengthened.
Recent flows into Indian government bonds have accelerated to their fastest pace in 15 months, driven by cooling global oil prices and easing geopolitical tensions in the Middle East.
While sovereign debt attracts foreign capital, the corporate segment has yet to see a comparable surge in participation.
The landscape is showing signs of gradual evolution, however.