Evolution of the Indian bond market

Abstract

The history of public debt in India began around the 18th century. The financial needs of the princely states were met largely by indigenous bankers and financers. The advent of the East India Company saw the concept of Public borrowing. Most borrowing was to support infrastructure development followed by funding of the World Wars. The first time that the provinces floated loans was in December 1920 under the Government of India Act 1919. The following presents a compressed timeline of the debt market development in India.