New Delhi, June 28 -- India's debt market is not equipped to finance the country's next phase of economic growth and requires structural reforms to improve liquidity, price discovery and participation, according to Deloitte's "State of Financial Services in India" report.

The report said India's economy is entering a phase that will require significantly higher levels of long-term capital, but the existing debt market is not capable of efficiently meeting those financing needs.

"Changing household consumption and savings patterns mean that we can no longer rely on bank deposits to the extent we have in the past to fund rising credit demand. To realise the ambition of becoming a USD 7.3 trillion economy by 2030, the debt market must brid...