The government needs to enhance the effectiveness of the insolvency framework, simplify tax structures for bonds, and ensure greater coordination between agencies to boost investor confidence in corporate debt, the Economic Survey for 2025-26 said on Thursday.
The regulators have taken several measures over the years to deepen the corporate bond market, but coordinated and phased reforms are needed to further strengthen it and lower the cost of credit for Indian companies, the survey said.
“As the market deepens, towards a potential ₹100-120 trillion by 2030, intermediation costs should decline, particularly for the mid-market segment, where much of India’s manufacturing capacity and job creation will emerge,” it said.
Realising…