Eco Survey Urges Stronger Debt Market for India's Growth, Climate Finance
Economy
C
CNBC TV18•29-01-2026, 18:31
Eco Survey Urges Stronger Debt Market for India's Growth, Climate Finance
- •The Economic Survey highlights the need to strengthen India's long-term debt market to fund infrastructure development and climate financing.
- •It notes that corporate bond markets are shallow and illiquid, primarily dominated by top-rated issuers, with limited securitisation and underdeveloped municipal bonds.
- •Pension and insurance funds are conservative investors due to regulatory and cultural inertia, hindering long-term capital flow.
- •The Survey suggests rationalising tax treatment of debt instruments, creating credit enhancement facilities, and standardising securitisation structures.
- •Reforms aim to build a stable, competitive, diversified, resilient, and innovation-friendly financial system, lowering the economy's cost of capital.
Why It Matters: India must strengthen its debt market through tax reforms and structural changes to boost infrastructure and climate finance.
✦
More like this
Loading more articles...
