19th Asia Bond Markets Summit - India Edition India's Next Chapter 2024 | The Asset | 17 July 2024 | TBA, Mumbai, India

The excitement is palpable. With financial markets settling to a new base of higher for longer, investors are starting to venture into the emerging markets. Among these markets, India stands out above the rest. Years of bold reforms have turbo-charged economic activity attracting both direct and portfolio investors looking to ride the wave of optimism and opportunity.

The country posted a growth rate of 7.2% in FY22/23, one of the fastest-growing major economies, according to the World Bank. It was the second highest among the G20 countries and nearly twice the average for emerging economies. Its strong showing was on the back of solid domestic demand, infrastructure expenditure, and the strength of its financial sector.
Within the financial sector, India’s bond market is attracting consideration attention. 2024 is likely to be a year of significant change and opportunity. Its inclusion into the JPMorgan Government Bond Index-Emerging Markets (GBIEM) global index suite is set to boost foreign investors’ participation.

As one of the most widely followed benchmarks for emerging market debt, the index inclusion is expected to draw more than US$20 billion of stable foreign inflows into India’s sovereign debt market, which could lower borrowing costs, support economic growth, and strengthen the Indian rupee.
As one of the largest in Asia with over US$2.3 trillion of total outstanding, the bond market is expected to play an important role to support the country’s ambitious infrastructure build out. Estimates by the Asian Development Bank projects India will need to spend US$343 billion per year to 2030 for infrastructure to support growth and taking into account climate-related challenges.
India’s bond market will account for 17% of the total emerging market bond issuance in 2024, up from 13% in 2020. In addition, with investors’ interest accelerating, it also is likely to boost the types of issuers and instruments that will become available in the coming years especially as the government and the central bank introduce reforms to improve market access, liquidity and transparency.
The expansion of India’s capital market is a positive development for the fastest growing industry segments such as services exports, healthcare, IT, real estate, FMCG, and renewable energy. In addition, the launch of infrastructure development bonds are also likely to boost activity as the government pursues large scale infrastructure projects such as in transportation, energy, and urban development.

These sectors are also set to add to India’s sustainable bond market, a rapidly growing segment of the country’s capital market offering investors an opportunity to finance projects that have positive environmental and social impacts. According to a report by Climate Bonds Initiative, India ranked third in the world in terms of sustainable bond issuance in 2020, with a total of $26.6 billion. The Indian government has been supportive of the development of the sustainable bond market, by providing policy incentives, regulatory frameworks, and market infrastructure.
From the government’s fiscal stimulus to the central bank’s accommodative monetary policy there are high expectations for the country’s fixed income market. However, there are also some challenges and risks that could affect the bond market performance, such as inflation, interest rates, fiscal deficit, and uncertain global market conditions.

2024 Sponsors

PLATINUM SPONSORS:
• Adani Energy Solutions
• Adani Renewables

EXCLUSIVE LAW FIRM SPONSOR:
• Saraf and Partners

SPONSOR:
• Moody's Rating
• MUFG

ASSOCIATE SPONSOR:
• ADB