Introduction
The Islamic finance market has been gaining traction globally, with the Sukuk segment emerging as a significant player. As of 2023, the global Sukuk market size was estimated at around USD 600 billion, with a projected compound annual growth rate (CAGR) of 10% through 2026. Within this context, India has shown a growing interest in Islamic finance, particularly in issuing Bond Masala INR Sukuk, which allows international investors to tap into the Indian market while adhering to Islamic finance principles. The increasing demand for ethical investment options aligns well with the global push towards sustainable finance.
Top 20 Bond Masala INR Sukuk Islamic India 2026
1. National Bank for Agriculture and Rural Development (NABARD)
NABARD has been a key player in the Indian Sukuk market, with plans to issue INR 10,000 crore (approximately USD 1.3 billion) in Sukuk by 2026. This issuance aims to support agricultural and rural development projects that comply with Islamic finance principles.
2. Indian Railway Finance Corporation (IRFC)
IRFC is expected to issue Sukuk worth INR 5,000 crore (about USD 660 million) by 2026. The funds will primarily be allocated for financing railway infrastructure projects, reflecting a commitment to sustainable transport solutions.
3. Housing and Urban Development Corporation (HUDCO)
HUDCO plans to enter the Sukuk market with an issuance of INR 3,000 crore (approximately USD 396 million) aimed at funding affordable housing projects. This aligns with the Indian government’s emphasis on housing for all.
4. Power Finance Corporation (PFC)
PFC is poised to issue Sukuk worth INR 4,500 crore (around USD 595 million) to finance renewable energy projects. This aligns with India’s commitment to achieving 500 GW of renewable energy capacity by 2030.
5. State Bank of India (SBI)
SBI is considering a Sukuk issuance of INR 10,000 crore (USD 1.3 billion) to fund green initiatives. The bank aims to attract investors focused on sustainable and responsible investing.
6. India Infrastructure Finance Company Limited (IIFCL)
IIFCL is expected to issue INR 2,500 crore (approximately USD 330 million) in Sukuk for infrastructure development. This will support various projects that enhance India’s connectivity and infrastructure capabilities.
7. Indian Renewable Energy Development Agency (IREDA)
IREDA plans to issue Sukuk of INR 2,000 crore (around USD 265 million) focused on financing renewable energy projects. This initiative supports India’s green energy goals and enhances investment in clean technologies.
8. National Highways Authority of India (NHAI)
NHAI is exploring a Sukuk issuance of INR 6,000 crore (approximately USD 792 million) to improve national highways. This funding is crucial for maintaining and expanding India’s road infrastructure.
9. Delhi Metro Rail Corporation (DMRC)
DMRC is likely to issue Sukuk worth INR 3,500 crore (around USD 462 million) to enhance public transport. This initiative emphasizes urban mobility and sustainability in major cities.
10. Airports Authority of India (AAI)
AAI plans to enter the Sukuk market with an issuance of INR 4,000 crore (approximately USD 528 million) to finance airport expansions. This funding will significantly enhance air travel facilities across India.
11. Indian Oil Corporation (IOC)
IOC is considering a Sukuk issuance of INR 5,500 crore (around USD 726 million) aimed at financing clean energy projects. This move reflects the company’s commitment to transitioning towards more sustainable energy sources.
12. Bharat Heavy Electricals Limited (BHEL)
BHEL is expected to issue Sukuk worth INR 2,800 crore (approximately USD 370 million) to finance power generation projects. This aligns with India’s energy security initiatives.
13. GMR Group
GMR Group is exploring Sukuk issuances of INR 3,200 crore (around USD 422 million) for infrastructure projects. This funding is pivotal for their ongoing projects in airports and highways.
14. Tata Power
Tata Power plans to issue Sukuk worth INR 1,500 crore (approximately USD 198 million) focused on renewable energy generation. This aligns with the company’s long-term strategy to enhance its green energy portfolio.
15. Adani Green Energy
Adani Green Energy is expected to issue Sukuk of around INR 5,000 crore (approximately USD 660 million) aimed at financing solar and wind projects. This reflects the company’s rapid expansion in the renewable energy sector.
16. Mahindra & Mahindra
Mahindra & Mahindra plans to issue Sukuk worth INR 1,000 crore (approximately USD 132 million) to finance electric vehicle projects. This is significant as India aims to promote electric mobility.
17. HDFC Bank
HDFC Bank is considering issuing Sukuk of INR 8,000 crore (around USD 1.06 billion) to fund various sustainable projects. This aligns with their strategy to cater to socially responsible investors.
18. Infosys
Infosys is expected to issue Sukuk worth INR 1,200 crore (approximately USD 158 million) to finance technology-driven sustainability projects. This reflects the growing trend of tech companies engaging in eco-friendly initiatives.
19. Wipro
Wipro may consider Sukuk issuances of INR 750 crore (approximately USD 99 million) aimed at supporting technological advancements in sustainable practices. This aligns with their commitment to corporate social responsibility.
20. Tata Consultancy Services (TCS)
TCS is exploring a Sukuk issuance of INR 2,500 crore (around USD 330 million) to fund digital transformation initiatives. This investment is crucial for enhancing the company’s operational efficiency and sustainability.
Insights
The Bond Masala INR Sukuk market in India is poised for significant growth, driven by the increasing demand for ethical investment options and the government’s push for infrastructure development. By 2026, the total anticipated Sukuk issuances could reach INR 70,000 crore (approximately USD 9.2 billion), reflecting a robust interest from both local and international investors. The growth of the Sukuk market in India also indicates a broader shift toward integrating Islamic finance principles into mainstream finance, which could further enhance India’s position as a global hub for sustainable finance. With a growing emphasis on green projects and social impact investments, the Sukuk market is expected to play a crucial role in India’s economic development and in attracting foreign investment.
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