If you’ve ever put money in a fixed deposit or a PPF (Public Provident Fund) account, you’ve already participated in the debt market. But this market is much more exciting than that and has a lot more instruments.

The Indian debt market has undergone a quiet revolution. From a relatively small market a decade ago, it has expanded dramatically. The total market size has grown more than threefold, from about ₹68 trillion in 2014 to over ₹226 trillion (over $2.6 trillion) by the end of 2024. This growth has been fuelled by economic reforms, regulatory changes, and increasing participation from both Indian and global investors.

This blog will tell you how you can be a part of this growth opportunity, and I will talk to you about a course that can help you in your investing journey.

The three pillars of the Indian debt market

The debt market can be broadly divided into three main segments, each serving a different purpose.

• Money Market: This is where short-term borrowing and lending happen, for periods up to one year. It helps banks, companies, and the government manage their daily cash flow needs. Some of the key instruments are i) Treasury Bills (popularly known as T-Bills), ii) Commercial Papers (CPs), iii) Certificates of Deposit (CDs), etc.
• Government Debt Market: This is the oldest and largest segment (accounting for nearly 60%) of the market. It consists of Government Securities (popularly known as G-Secs). These are bonds issued by the Reserve Bank of India (RBI) on behalf of the central and state governments. They are considered risk-free from default because they are backed by the Indian government.
• Corporate Debt Market: This is where companies borrow money directly from investors by issuing bonds and debentures. This market has seen explosive growth in the recent past. According to RBI Financial Stability report, June 2025, in the financial year 2024-25, Indian companies raised a record ₹9.9 trillion through corporate bonds. These bonds typically offer higher returns than government bonds to compensate investors for the higher risk.

How can you, as an Investor participate in this market

Gone are the days when bonds were considered as an investment instrument only for institutions. Today, thanks to regulatory changes and technology, it’s easier for retail investors like you and me to participate.

The table below shows some common debt instruments and their characteristics.

*The information provided in the above table is indicative and for educational purposes only. Please consult a SEBI registered investment advisor before making any decisions.

You can participate in the Indian debt market through the RBI Retail Direct Scheme. Its a platform that allows you to directly invest in government securities. Online bond platforms are another medium which allow you to browse and buy bonds with ease, much like stocks. Check SEBI’s list of registered online bond platform providers here. Another way to invest in Indian debt instruments is debt mutual funds which are managed by professionals.

Understand the Indian debt market with this NISM & FIMMDA Course

The “Overview of Indian Debt Markets” course, jointly developed by the NISM and the Fixed Income Money Market and Derivatives Association of India (FIMMDA), is designed to provide a comprehensive understanding of the Indian debt market.

The course is structured into three modules that is same as the three pillars of Indian debt market we discussed.

• Money Market: Explains various instruments, trading mechanism, and benchmarks
• Government Debt Market: Explains types of instruments and how they are issued
• Corporate Debt Market: Explains corporate bonds and their issuance process

The course is entirely online, giving you the flexibility to learn over a period of 30 days. It has around 3 hours of learning content including interactive quizzes. The course fee is ₹2000/- plus taxes. And when you successfully complete the course, you will receive a joint certificate issued by NISM and FIMMDA.

Whether you’re a student, a professional in banking, or an investor, the course will help you build a solid foundation in the Indian debt market. Explore the course details and feel free to reach out (elearning@nism.ac.in) if you have any questions.

These are some of the other courses jointly offered by NISM and FIMMDA, covering various aspects of the fixed income securities market.

Introduction to Fixed Income Securities

Introduction to Fixed Income Mathematics

Introduction to Interest Rate Derivatives

Happy learning!

Author: Sandeep K Biswal, Deputy General Manager – CCC, NISM