Abstract

The industrial debt market in India a critical component of the countrys financial system remains underdeveloped relative to its potential. Despite significant growth in recent years this market has yet to reach its full capacity due to several systemic and structural challenges. This paper explores the current state of the industrial debt market in India analyzing key factors such as regulatory constraints market inefficiencies and the limited participation of institutional investors. It further examines the impact of these challenges on the overall economic growth and industrial financing. Through a comprehensive review of existing literature market data and case studies this study highlights the unrealized potential of the industrial debt market and proposes strategic recommendations for enhancing its development. By addressing the identified barriers and leveraging emerging opportunities this paper aims to provide insights into how the Indian industrial debt market can evolve to be