The provision and enhancement of physical infrastructure has been a recurring theme within the area of growth and development economics ever since the time of inception of the topic. The popularity of the supply of social overheads by the state united of the three key functions, the jump in investment spending advocated by the theories of Rosenstien Rodan and therefore the like, all point to the pertinence of funds spent on infrastructure to growth and development of an economy. The fast growing needs for these infrastructure provisions let alone the tightening of fiscal purse strings points to the requirement for enhanced involvement of the private sector in infrastructure provision. This involvement will be expected to be in various capacities in addition as at various stages of infrastructure provision. The peculiarities of infrastructure as an asset end in its own challenges in engaging the private sector in a very meaningful way. The natural monopoly nature, no or limited recourse financing and long biological time make infrastructure an especially interesting asset class. Nevertheless, there's a powerful case for personal involvement emanating from various dimensions. The domain lacks strong theoretical base to form a meaningful understanding of the challenges emerging due to special nature of infrastructure as a sector. Hence, this thesis is, but, a unique try to understand the present trends, nature and challenges in infrastructure finance in India. The bond market in India has distinctly lagged behind even when the equity market has seen remarkable strides of development. strangely enough, India’s steady and increasing rate of the last 20 years has been majorly financed by retained earnings and equity capital raised by public offerings. This can be unlike other countries because the corporate bonds market in India has had little or no role to play thus far. This perpetual underdevelopment of the bonds market manifests itself directly within the visible financing gap witnessed across industrial sectors, more so in infrastructure development, which are critical in enhancing growth. Dedicated efforts are needed to grasp the explanations for bond market underdevelopment through various dimensions. This article puts a light on efforts to urge a reliable estimate of infrastructure investment in India and to grasp the trends in infrastructure investment in India and to spot reasons for underdevelopment of the Indian bond market.

KEYWORDS: Bond, Capital Market, Infrastructure, Liquidity, Debt, Financing, Economic, Prosperity.