The Ministry of Housing and Urban Affairs (MoHUA) organised a consultation called Municipal Bonds Unpacked – a dialogue with the intermediaries to deliberate on strategies for deepening the municipal bond market and strengthening alternative sources of financing for Urban Local Bodies (ULBs). The meeting brought together senior officials from the Government of India, market regulators, credit rating agencies, transaction advisers and domain experts. Participants exchanged views on enhancing the ecosystem for municipal bond issuances and on enabling cities to access capital markets in a sustainable and structured manner. The Secretary of MoHUA, Srinivas Katikithala, set out the Government of India’s vision for empowering cities through innovative financing mechanisms and emphasised the importance of municipal bonds as a key instrument for supporting urban infrastructure development and improving service delivery. The Additional Secretary, D. Thara, reviewed the experience of municipal bond issuances by ULBs to date and highlighted the need for continued capacity building, improved financial management and strengthened institutional frameworks to enable more cities to tap the bond market. The consultation included perspectives from regulatory and market participants. The Securities and Exchange Board of India (SEBI) was represented by a former executive director who outlined the regulatory approach to facilitate a conducive environment for municipal bond issuances. Representatives of ICRA addressed the role of credit ratings in promoting fiscal discipline, transparency, accurate and timely financial reporting and the need for robust revenue streams. Transaction advisers and merchant bankers explained structuring considerations, while the National Institute of Securities Markets (NISM) provided context for developing a vibrant municipal debt market. Deliberations underlined the critical role of municipal bonds in mobilising resources for urban infrastructure, improving the financial autonomy of cities and supporting the Government’s vision of sustainable and resilient urbanisation. Stakeholders discussed measures to expand investor confidence, standardise processes, enhance the creditworthiness of ULBs and scale up issuances across more cities. MoHUA reiterated its commitment to work closely with all stakeholders to create a robust municipal finance ecosystem and to promote greater participation of cities in capital markets as part of ongoing efforts.