Bonds are debt instruments through which governments, corporations or institutions borrow money from investors and pay periodic interest before returning the principal at maturity. Government securities (G-Secs) are bonds issued by the central or state government to fund fiscal needs and infrastructure, offering sovereign backing and negligible credit risk.
In India, the bond market size is approximately ₹238 lakh crore (~US$ 2.78 trillion), with government securities making up a major share and corporate bonds expanding rapidly.Types include treasury bills (short-term), government bonds (long-term), State Development Loans, and corporate bonds.
Investing in bonds and G-Secs is attractive because they provide steady income, lower volatility than equities, and portfolio diversification. While precise investor counts for bonds aren’t widely reported, India’s overall investor base across markets exceeds 12 crore registered accounts, with fixed-income participation growing. The below graph shows the growth of market and the increasing bond participation in India.
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