Why India’s bond market is becoming an opportunity investors can no longer overlook

For decades, India’s bond market has been a key part of the country’s economy, financing government spending, supporting corporate growth, and underpinning infrastructure projects.

However, it has largely

remained outside the scope of everyday investor discussions. Despite its importance, most individual investors find it distant, unfamiliar, and underused. This disconnect between its economic significance and investor engagement presents a clear opportunity in India’s financial markets.

As of September 30, 2025, the bond market was valued at about $2.81 trillion, according to data from SEBI and the Clearing Corporation of India, matching equities in its role in raising capital. What makes it notable is not just its size but the fact that very little of it involves direct participation by individual investors. While fixed income assets continue to dominate household savings through bank deposits and traditional instruments, direct bond ownership remains limited, creating a gap between capital allocation and the increasing depth of the market.

Market activity indicates the disconnect is decreasing. The corporate bond market has experienced a significant increase in secondary market trading, with 11.9 lakh transactions last year and 11.7 lakh in the first seven months of this year. This suggests an annual growth rate of about 80 to 90%. The secondary market volumes, around $200 billion, within an overall corporate bond universe estimated at $642 billion, highlight the rapid market expansion.

More noteworthy than the growth rate is the change in participants. Trading is no longer limited to large institutions; individuals, family offices, and smaller companies are becoming more active. This shift reflects a reassessment of portfolio strategies amid inconsistent equity returns and increased volatility. As wealth generation accelerates, so does the need to protect that wealth.

Bonds directly address that need. They are issued as loans by governments or companies, providing regular income, specific maturities, and a clearer risk profile through credit ratings. Compared to equities, bonds usually have lower volatility and are more predictable, making them suitable not only for income but also for stability within long-term wealth strategies. Regulatory reforms have further supported this trend by lowering minimum investment amounts from ₹10 lakh to as little as ₹10,000. These reforms have also improved disclosure standards and introduced electronic platforms that increase transparency around pricing, issuer quality, and transaction execution.

As participation expands and access to markets improves, investors face a new challenge: understanding. They need consistent information and context to evaluate credit quality, monitor rating changes, interpret yields, and appropriately position bonds in their portfolios. To meet this need, CNBC-TV18, along with CNBC Awaaz and CNBC Bajar, has partnered with IndiaBonds to launch Bond Street, a dedicated initiative aimed at demystifying India’s fixed income market.

Bond Street serves as an ongoing editorial and broadcast platform that reflects the increasing significance of bonds in the investment world. It is integrated across CNBC-TV18, CNBC Awaaz, and CNBC Bajar, offering daily updates on bond market developments such as credit rating actions, issuer activities, market flows, and regulatory news. Additionally, weekly segments provide in-depth analysis and expert insights, helping investors connect market trends to their portfolio decisions and overall economic perspectives.

IndiaBonds applies its fixed income expertise to a partnership during a period of significant technological and regulatory changes that are transforming investor interactions with the bond market. Vishal Goenka, co-founder of IndiaBonds, explains that this shift indicates a broader change in investor priorities. “As household wealth has grown, the focus is shifting from only creating wealth to preserving it via effective portfolio diversification with fixed income. Bonds offer stability, regular income, and a clear risk framework, which makes them increasingly relevant in today’s market environment,” he says.

Through Bond Street, the focus is on making fixed income part of mainstream financial conversations rather than a niche allocation discussed only during market stress. By combining market data, expert commentary and accessible explanations, the initiative aims to bridge the gap between the bond market’s expanding scale and the level of understanding required to participate meaningfully in it.

Bond Street airs on CNBC-TV18, CNBC Awaaz and CNBC Bajar, with daily market updates and weekly in-depth conversations. Episodes are also available on CNBC-TV18’s digital platforms.