Capital Markets Catalyze India's Infrastructure Vision

Capital markets are emerging as a cornerstone in financing India's infrastructure ambitions, stressed SEBI Chairman Tuhin Kanta Pandey during the Infrastructure Conclave 2025. Pandey underlined that infrastructure investment is a long-term strategy, where capital markets facilitate patient capital influx from diverse investors, crucial for India's growth trajectory.

Highlighting the diversification benefits, Pandey noted that leaning on capital markets mitigates concentration risks associated with traditional bank or government funding by offering varied instruments like corporate bonds and Infrastructure Investment Trusts (InvITs). These avenues distribute risk while ensuring access to steady yields and discipline through stringent governance norms.

Capital markets, Pandey asserted, serve not only as financiers but also as guardians of transparency and quality in infrastructure projects. With infrastructure indices consistently delivering strong returns, tools like IPOs and REITs have proven substantial, significantly bolstering market capitalisation. Moreover, municipal and green bonds are gaining traction for urban and climate-friendly projects, reinforcing infrastructure as a key economic driver towards India's $5 trillion economic goal.

(With inputs from agencies.)