Explained: How India's bond market became more accessible over the last 10 years

India's corporate bond market has expanded from around Rs 11 trillion in FY12 to nearly Rs 59 trillion in FY26, registering a CAGR of 13.1%, driven by regulatory reforms, digital platforms and rising retail participation. Despite this growth, banks still dominate corporate financing, with about 65% of the non-financial commercial sector's Rs 45 trillion FY26 funding coming through bank credit, while AAA-rated papers account for 58% of issuances and FPI holdings remain modest at 5.4%. Recent RBI and SEBI measures, including the removal of the 30% FPI concentration limit and the launch of derivatives on AA+ and above corporate bond indices, are aimed at deepening liquidity and broadening participation.