Wanted: A vibrant corporate bond market

It would be prudent to bring more transparency before they grow so big that migration to exchanges becomes difficult

This year marks 20 years since the Asian financial crisis. The 1997-98 crisis demonstrated the vulnerability of short-term external debt financing and the importance of having stable long-term finance for achieving sustainable economic growth. While India is not likely to face financial crisis similar to that faced by the East Asian economies, it is important to learn from past crises. One lesson from the Asian crisis is the need to have multiple channels of finance. 

India’s economic growth so far fueled by bank finance is now experiencing a slowdown. This is largely because of the twin balance sheet problem that India