Numbers don’t lie – they reveal revolutions.
The corporate bond market in India has been growing in stealth mode over the past few years and stood at ₹53,63,554.56 cr ($626.72 Billion) as of 31st Mar-2025. But this year, we are seeing a potential explosion in growth.
The table above depicts trading volume and the number of trades in the Indian Corporate Bond Market (Secondary Market).
Volumes stayed almost flat in FY18–FY24 but rose strongly in FY25 to ₹17.10 lakh crore (+24.5% YoY). For the 1HFY25-26 six-month period, this number has already reached ~ ₹11.89 lakh crore and on an annualised basis is tracking ~ ₹23.77 lakh crore in FY26 (projected +39% YoY), as per Sebi data.
The number of trades slipped for two years (13.06 → 12.91 → 11.91 lakh) and stood at a staggering 11.14 lakh for the past 6 months ended 30-Sep-25. On an annualised basis, the number of trades is set to jump to ~22.29 lakh in FY26 with a projected growth of +87% YoY! The pattern—flat volumes, fewer trades, then a sharp rise in both—points to broader, retail-led participation rather than just bigger tickets.
Retalisation of Bond Markets
India’s Corporate Bond market (Secondary) is moving from fewer, larger tickets to many more, smaller ones—the hallmark of retail participation enabled by OBPP rails. The average ticket size has eased from ~ ₹1.44 crore in FY25 to ~ ₹1.07 crore in FY26 (Projected) year-to-date, a drop of ~25.7%. More but smaller trades generally mean tighter bid–ask spreads and cleaner price discovery because prices are tested more often across the curve.
Why This Shift Matters for Households & Markets?
A more active bond market benefits everyone, creating a virtuous cycle of liquidity. When bonds are traded more frequently, their prices become more current and reflective of their true market value, making it easier to trade larger amounts and ensuring that risk is distributed more efficiently across the market. This increased activity shrinks the gap between buying and selling prices – and encourages more participants to enter the bond market for their investments.
This vibrancy in the secondary market directly supports the primary market. When issuers see consistent and visible demand for their bonds, they gain the confidence to launch larger and more frequent listed offerings, which can ultimately lower their cost of borrowing.
For household investors, the advantages are tangible. The rise of Online Bond Platform Providers (OBPPs) has brought transparency with enough information right at your fingertips, standardised documentation, and the ability to execute investments digitally within minutes. This shift demystifies fixed income, making it simpler for you to understand, compare, and ultimately own bonds as part of your portfolio.
Key Enablers for a Deeper Market
To build on this progress, three key upgrades could further enhance the market ecosystem.
First, creating a “single tape” for bonds—As of now, trading happens on different venues or platforms within the stock exchanges. However, a consolidated, real-time view of all quotes and trades across RFQ, capital markets and OTC venues would be a game-changer for transparency and liquidity. It gives all participants a clear view of the entire market.
Second, strengthening the criteria for distributors on online bond platforms is essential. Implementing robust ‘fit and proper’ rules, similar to those for equity and mutual fund distributors, would significantly raise the quality of financial advice and protect investors from mis-selling.
Finally, improving the market’s underlying financial infrastructure is essential to building the bond market super-highway. For example, selling bonds for individuals still involves a lengthy paper process, which can be simplified with new technologies. Better ‘data plumbing’ is crucial as well, as this involves making disclosures machine-readable, offering open APIs for trading data, and standardising trade sizes.
Conclusion
After years of barely moving, India’s corporate bond market is finally breaking out. If FY26 lands close to today’s run-rate, this will be the strongest year on both turnover and participation. The message is simple: broader retail activity and better pipes are rewriting the market’s rhythm.
(The author is Co-founder, IndiaBonds)
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
