The Economic Survey flags shallow corporate bond markets and underdeveloped municipal bonds as key challenges

GK and monthly revision
Economic Survey calls for strengthening India's long-term debt market
The Economic Survey has highlighted the urgent need to strengthen India's long-term debt markets, particularly corporate bonds, municipal bonds, and the participation of institutional investors. It recommends measures like rationalizing tax treatment and strengthening credit enhancement to deepen market participation and improve maturity profiles. This is crucial for supporting infrastructure development and climate-related investments in the country.
Revision structure
Key points
Exam-ready takeaways
It recommends rationalizing tax treatment for debt instruments to deepen market participation
The report also suggests strengthening credit enhancement mechanisms to improve maturity profiles of debt instruments
The measures aim to support infrastructure development and climate-related investments in the country
The Economic Survey is an annual report on the state of the Indian economy
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