The Crisil report further highlights that the infrastructure sector will play a pivotal role in this debt-driven expansion.
On Friday, a report by Crisil revealed that Corporate India will need to raise approximately Rs 115-125 lakh crore of debt between fiscals 2026 and 2030. This staggering figure is intended to cover private and public sector capital expenditure, working capital, and the financing needs of non-banking financial companies (NBFCs). The detailed analysis indicates that around Rs 45-50 lakh crore of this debt will be allocated for capital expenditure, while the remaining Rs 70-75 lakh crore will be utilised to meet the financing requirements of NBFCs and working capital needs. These projections span India’s vast corporate landscape, encompassing major infrastructure firms, NBFCs, and other corporates, and highlight the significant capital challenge facing the country over the next few years.
As the report states, “Corporate India will need to raise approx. Rs 115-125 lakh crore of debt between fiscals 2026 and 2030 to meet private and public sector capex.”
In light of these challenges, the report emphasises that the corporate bond market holds significant untapped potential. It stated,”the corporate bond market has the potential to step up its funding contribution and help bridge this gap.”This call for a greater role for the bond market is echoed by industry analysts who argue that strengthening this channel would not only reduce reliance on bank loans but also provide a more stable and diversified funding source for infrastructure projects and other capital-intensive endeavours.
Additional authentic data from industry sources reveals that the Indian government has been actively promoting reforms aimed at bolstering the bond market. Measures such as regulatory simplifications, tax incentives and initiatives to improve market transparency have been introduced in recent years. These reforms are designed to make the corporate bond market more attractive to both domestic and international investors. For instance, the Reserve Bank of India (RBI) has been working on initiatives to widen the investor base and enhance liquidity in the corporate bond market, recognising its critical role in meeting the nation’s funding needs.
Moreover, India’s focus on infrastructure development has been further bolstered by several government policies, including the promotion of public–private partnerships (PPPs) and the introduction of viability gap funding for critical projects. These policies aim to leverage private sector participation while ensuring that key infrastructure projects receive the necessary capital. The improved credit profiles of infrastructure assets, as highlighted by Crisil, further attest to the government’s efforts in creating a conducive investment climate.
Despite these positive trends, challenges remain. The moderate pace of growth in the financing ecosystem means that unless additional funding channels are effectively tapped, there may be a significant shortfall in meeting the projected debt requirements. This potential funding gap could pose risks to the execution of large-scale infrastructure projects and might slow down economic growth if not addressed promptly.
To mitigate these risks, financial experts advocate for a multifaceted approach that includes enhanced regulatory support for the corporate bond market, increased participation of foreign investors and the development of innovative financing instruments. Such measures could help bridge the anticipated funding gap and ensure that the inflow of capital is aligned with India’s long-term developmental objectives.
In conclusion, the Crisil report serves as a wake-up call for Corporate India. With an estimated debt requirement of Rs 115-125 lakh crore between FY26 and FY30, the need to expand and diversify funding sources is more urgent than ever. The report’s emphasis on the potential of the corporate bond market, combined with a series of government-led reforms, could provide a pathway to meet these immense capital needs. However, sustained policy support and market innovation will be crucial in ensuring that India’s robust growth ambitions are not hampered by a funding shortfall. As the nation continues its push for infrastructural and economic transformation, the next few years will be critical in shaping the financial landscape for generations to come.