<h1>India's Corporate Bond Market Grows Four-Fold in a Decade; Faces Liquidity, Diversity, and Transparency Challenges.</h1> The corporate bond market in India is evolving, providing an alternative to bank finance and enhancing financial stability by distributing risks. Efforts by the government, SEBI, and RBI have led to significant growth in the market, with a four-fold increase in outstanding bonds over a decade. Despite this growth, challenges remain, such as limited secondary market liquidity, dominance of highly rated issuers, and a preference for private placements. Additionally, the market lacks diversity in investor profiles and faces hurdles in developing complementary markets like derivatives and repos. Future focus should be on expanding the investor base, improving market transparency, and fostering conditions for specialized bonds like ESG bonds.