The supply of corporate bonds in the domestic market is expected to double to Rs 65-70 lakh crore by fiscal 2025 with the financial sector contributing around 50 per cent to this growth, rating agency Crisil said.
The demand for corporate bonds, however, is likely to be Rs 60-65 lakh crore by March 2025.
“Over the next five fiscals, corporate bond issuances outstanding could more than double from around Rs 33 lakh crore or 16 per cent of gross domestic product (GDP) at the end of fiscal 2020 to Rs 65-70 lakh crore – tantamount to 22-24 per cent of GDP – by the end of fiscal 2025,” the agency’s Managing Director Gurpreet Chhatwal said during a webinar. The financial sector will contribute around 50 per cent of the incremental supply, followed by innovation (close to 25 per cent) and infrastructure (about 20 per cent), the agency said.