Buying municipal bonds (or "munis") is a strategy for investors seeking regular income with significant tax advantages. In 2026, the Indian municipal bond market is seeing a major push due to new government incentives designed to fund urban infrastructure. 1. Key Types of Municipal Bonds
: These are backed by the "full faith and credit" of the issuing city or state. They rely on the municipality's general taxing power (like property taxes) to repay bondholders. guide to buying municipal bonds
: A growing category in 2026, these specifically fund "green" projects like solar parks or electric bus fleets. 2. Market Outlook for 2026 Buying municipal bonds (or "munis") is a strategy
: The Union Budget 2026-27 introduced a ₹100 crore incentive for any city issuing bonds exceeding ₹1,000 crore. This is expected to bring higher-tier cities like Ahmedabad, Surat, and Bengaluru into the market with better liquidity. Key Types of Municipal Bonds : These are