Though the Indian equity market has shown some encouraging growth in the last decade, the Indian debt market has continued to remain sluggish. In an environment where India is keen to attract foreign investments, it will be imperative to develop the secondary market for debt. This study, commissioned by USAID and the Centre for Analysis Information and Studies, New Delhi, takes a comprehensive look at the Indian private corporate debt market, the public sector bond market, the Government securities market, the housing finance and other debt markets. Recommendations have been made in two parts; braod recommendations for the development of the debt market as a whole and specific recommendations for the development of various segments of the debt market. Recommendations covering the entire debt market, cover integration between the regulated market and the free market, market making for financing and hedging options, interests rate derivatives and tax reforms. Segment-wise recommendations include corporate debt market, PSU bond markets, Government securities market, housing finance and securitisation, new instruments and bond market services.