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  The economic stability of a country such as India can be evaluated by the diversity in the country's bond market.This is true because a country uses bonds to support infrastructure development and projects that help its people.
  
  The government issues bonds, or certificates of debt, to raise funds, according to Easy Online Funds. (See Reference 1). Usually, the certificates accrue interest and are like loans whereby the general public acts as the lender.
  
  

8 percent Savings

• The popular 8 percent savings bond in India has an interest rate of 8 percent. The interest is taxed, but once the bond matures in six years from the issue date, interest stops accruing.
  
  

Tax Saving

• Tax saving bonds are another popular investment vehicle in India. They are the same as infrastructure bonds and Rs 100,000 can be invested annually for a minimum for three years.
  
  

Capital Gains

• Capital gains bonds are another popular option. They are bonds that are issued "by large corporations and organizations," according to Easy Online Funds (SEE REFERENCE 1). Gains made from selling capital assets can be invested in these "bonds within six months of the sale in order not to pay capital gains tax," the company says on its Website.