India budget to increase borrowing, impacting bond yields
after close1 source ↓written by the desknot a recommendation
- $180 billion
- 11% to ₹16.5 trillion
- elevated
- $1.3 trillion bond market
Indian traders are preparing for a record government debt supply as Finance Minister Nirmala Sitharaman's budget on 1 Feb may raise gross borrowing by 11% to ₹16.5 trillion ($180 billion) for the fiscal year starting April 1. This increase, driven by debt maturities of ₹5.5 trillion, is expected to keep borrowing costs elevated in the $1.3 trillion bond market. Higher financing costs could further strain the economy amid rising US tariffs.
Not investment advice. For informational purposes only.