India's debt market not equipped to finance next phase of growth, needs structural reforms: Deloitte

India's debt market lacks the structural capacity to finance the country's next phase of economic growth, according to a Deloitte report released Thursday. The consulting firm identified inadequate liquidity, weak price discovery, and limited investor participation as key constraints preventing the market from meeting long-term capital needs required to achieve a $7.3 trillion economy by 2030.

Deloitte recommended three reforms: deepening the debt market through broader investor participation and integration of money, bond and derivatives markets; making interest rates genuinely market-driven with robust benchmark yield curves; and attracting global investors to shift rupee price discovery from offshore markets to domestic exchanges. The report warned that without these changes, tightening global conditions will directly impede India's economic growth.