OCTOBER 2011
Impact of new banking licenses
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FUTURE OF INDIAN DEBT MARKET INTRODUCTION & HISTORY ABOUT INDIAN DEBT MARKET Indian economy has expanded with an average of about 8.5% annually for the past 4 years and one of the major contributors of this is the economy‘s rising productivity and investment. India‘s bright prospects have attracted record capital inflows, even amid heightened global uncertainty and slowing growth in the United States.
INDIAN DEBT MARKET Generally in any developed country the debt market is many times larger than the equity market. But compared to India‘s world class equity markets, India‘s corporate bond market is still in an embryonic stage, both in terms of the market participation and infrastructure. From 1996 to 2008 the ratio of equity market market capitalization to GDP has more than trebled to 108% from 32.1% the debt market grew to a more modest 40.0% of GDP, from 21.3%.