Green bonds continued to draw less investor interest, which may lead to further reduction of issuances by the government in the second half of the financial year.

In the first half, the government planned to raise Rs 10,000 crore, but it could raise only Rs 5,000 crore. Industry experts believe that though the government has kept the targeted issuances at Rs 10,000 crore in the second half, it may not be able to do so.

This is similar to the experience in 2025 when the government had announced the issuance of Rs 32,000 crore in FY25 with Rs 12,000 crore in the first half and Rs 20,000 crore in second half, as per data from government. However, the government could only raise Rs 21,697 crore in FY25, including Rs 7,443.49 crore that devolved on the primary dealers.

What do experts say?

See Full Page