Niti draws plan to double corporate bond mkt

GOVERNMENT THINK TANK Niti Aayog on Thursday suggested a phased strategy to double the size of India’s corporate bond market to ¥100-120 lakh crore by 2030 by focusing on tax harmonisation, regulatory simplification, digital infrastructure, expanded issuer and investorand deeper risk-management markets.

- FE BUREAU

In a comprehensive report, it said building a liquid, efficient,and globally competitive corporate bond market is key to achieving a $30 trillion economy to become a developed nation by 2047.

It said India’s corporate bond market needs targeted tax harmonisation to compete with equities and G-secs and to position bonds as long-term wealth-building tools. It suggested extending Section 80C (Income Tax) benefits to corporate bonds or creating a new Section 80CCF-like window, offering withholding tax relief for foreign investors, and equalising capital gains treatment across equities, debt funds and bonds with a uniform 12.5% LTCG rate plus indexation.