The Indian stock market’s abject performance in recent years has been enough for the government to consider ways to entice foreign investors, who have dumped $52 billion of Indian shares since April 2024 after buying $25 billion in 2023-24.

Already, in June, foreign investors in Indian government securities received a boost when the withholding as well as capital gains tax — both long and short term — were removed. Now, talk is on to do something similar for the stock market too. But an entirely different type class of financial asset has spent much of 2026 looking to attract India’s small investors: corporate bonds.

Bonds are known to attract a more sedate type of investor. But platforms that offer corporate bonds are hoping to capitalise on the stock market being in the doldrums and low bank deposit rates.…