India’s debt capital markets growth moderated by 3 per cent in 2017, on the back of slowdown in bond issuances. As per credit rating agency ICRA’s latest report, the debt markets reported a growth of 16 per cent in the value of corporate bonds outstanding as on December 2017, which is lower than 19 per cent growth reported for the same period in the previous year.
The report further noted that the bond issuances volume decreased by 2.03 per cent to Rs 4.83 lakh crore during April-December 2017 from Rs 4.93 lakh crore reported during the same period last year. Besides, the volume of corporate bonds outstanding increased significantly by 16.30 per cent to Rs 26.47 lakh crore as on December 2017 from Rs 22.76 lakh crore as on December 2016.
The rating agency highlighted that though the growth of corporate bond issuances got hit with recent volatility and surge in long-term bond yields, India's corporate debt/GDP penetration remains low as compared to many other countries and due to this the medium to long-term prospects for growth of India's debt capital market remains intact.