June 09, 2026 — An influx of foreign inflows is powering strong growth in Indian bond markets, following a series of reforms that opened the market to international investors and led the way toward the inclusion of Indian bonds in key global bond indices.

Trading volumes in Indian corporate bonds increased 20% last year, alongside a 12% increase in Indian government securities. Foreign participation has been a key contributor to that growth.

“In 2020, India made a clear pivot away from tightly managing foreign access to its bond market toward a market structure that embraces global demand,” says Nitin Agicha, Vice President in Market Structure & Technology at Crisil Coalition Greenwich and author of India’s fixed-income market: Growth, liquidity and foreign investment. “Those reforms are now paying off, as a combination of fewer concentration limits, easier onboarding and enhanced access entice foreign investment in both government and corporate bonds.”

Index Inclusion as a Catalyst for Growth 
The opening of India’s bond markets and the subsequent increase in market liquidity laid the groundwork for index inclusion, which in turn generated further investment and trading.

“From a flow perspective, index inclusion has been a game changer as fund managers tracking key emerging market indices pile into required allocations,” says Nitin Agicha.

Another stimulant to activity has been the growth and proliferation of online bond-trading platforms. The entrance of global bond-trading venues into the Indian market could kick off a new era of competition among local e-venues and the exchanges.

India’s fixed-income market: Growth, liquidity and foreign investment analyzes recent growth in India’s bond markets. The report breaks down the composition of the market and tracks trading volumes in government bonds, corporate bonds and other fixed-income products.

It also discusses the various methods and venues through which investors are trading Indian bonds, examines the primary channels foreign investors are using to access the market, and traces how regulatory reform, technology innovation and market developments like index inclusion are fueling growth.