Explore the history of surety bonds from ancient Mesopotamia to India’s modern infrastructure framework. Learn key milestones, evolution, and growing adoption.

Introduction Did you know that large portions of contractors’ working capital in India are locked away as collateral for bank guarantees (BGs)? With the country’s massive infrastructure pipeline and a drive to include more MSMEs, a new tool is coming into focus: surety bonds India . These offer a smarter alternative for guarantee obligations and could reshape how infrastructure and contracting work in India. The Bank Guarantee Challenge in India High Collateral Requirements T

When entering into contracts or business agreements, you may encounter terms like bank guarantees and surety bonds . Both serve as financial safety nets, but they work differently and suit different situations. Choosing the right one can protect your interests and ensure smooth transactions. This post breaks down the key differences between bank guarantees and surety bonds, helping you decide which option fits your needs best. What Is a Bank Guarantee? A bank guarantee is a