India’s corporate bond market has been quietly expanding over recent years, reaching ₹53.63 lakh crore ($626.7 billion) as of March 31, 2025, and is now showing signs of rapid acceleration. According to SEBI data, secondary market trading volumes, which remained largely stable from FY18–FY24, surged 24.5% year-on-year in FY25 to ₹17.10 lakh crore. In the first half of FY26, volumes have already touched ₹11.89 lakh crore, indicating an annualised projection of ₹23.77 lakh crore—up 39% year-on-year.
The number of trades, which had declined for two consecutive years, has rebounded sharply, with 11.14 lakh trades recorded in the six months ending September 2025. Annualised, this suggests around 22.29 lakh trades in FY26—an 87% jump. This surge, coupled with a fall in average trade size from ₹1.44 crore to ₹1.07 crore, signals growing retail participation via Online Bond Platform Providers (OBPPs).
This shift enhances liquidity, narrows bid–ask spreads, and improves price discovery. After years of stagnation, India’s corporate bond market is entering a vibrant phase, driven by retail involvement and stronger market infrastructure.
