Govt may revisit overseas sovereign borrowing idea in 2021 Budget
4 years, 1 month ago

Govt may revisit overseas sovereign borrowing idea in 2021 Budget

Live Mint  

NEW DELHI: A proposal to go for sovereign borrowing overseas, that first found mention in the 2019 Budget, is back on the table at the finance ministry and could again figure in the government’s annual accounts statement next year, according to two sources familiar with the development. The idea is being revived to lower government’s borrowing costs by tapping cheaper overseas money to ensure the government's large debt raising doesn't harden the rates here. India’s sovereign external debt to GDP is at less than 5%, among the lowest globally and thus, supporters of the plan argue, it would be easy for the government to service the borrowing. India’s external debt at the end of March this year was $558.5 billion, dominated by long-term borrowings and short-term to finance imports, according to a 16 September status report issued by the finance ministry.

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History of this topic

India’s ‘sweet spot’ lures bond funds amid global market turmoil
4 months ago

India’s ‘sweet spot’ lures bond funds amid global market turmoil

Hindustan Times  

Global funds have poured money into India’s debt market for 14 weeks in a second streak of buying this year, evidence of the country’s appeal amid the ructions of worldwide financial markets. “India is in a sweet spot from a macro perspective and also from a monetary policy perspective,” said Jenny Zeng, chief investment officer for Asia Pacific fixed income …

India aims to expand scope of ESG debt after surpassing 2021 issuance record
4 months ago

India aims to expand scope of ESG debt after surpassing 2021 issuance record

Hindustan Times  

India’s market regulator intends to expand the scope of its sustainable finance framework to include more products, a potential boost to ESG-labeled instruments in Asia. {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} The Securities and Exchange Board of India will consult on introducing social bonds, along with sustainable and sustainability-linked bonds, to the current suite of environmental, social and governance debt. {{^usCountry}} {{/usCountry}} …

Govt Estimates Centre's Debt To Rise To Rs 185 Lakh Cr In FY25
4 months, 3 weeks ago

Govt Estimates Centre's Debt To Rise To Rs 185 Lakh Cr In FY25

News 18  

The government estimates its debt, including external borrowing, valued at current exchange rate and public account and other liabilities will increase to Rs 185 lakh crore, or 56.8 per cent of the GDP, during the current fiscal year. The total debt stood at Rs 171.78 lakh crore, or 58.2 per cent of the gross domestic product, at the end of …

What is the outlook on the global economy? | Explained
8 months ago

What is the outlook on the global economy? | Explained

The Hindu  

The story so far: The International Monetary Fund released the latest global financial stability report on Tuesday warning about the risks to the global financial system from persistent high inflation, rising lending in the unregulated credit market, and increasing cyber-attacks on financial institutions. Investors have been pushing up the prices of financial assets such as stocks in recent months in …

Inclusion in Global Indices to Bring USD 40 bn Foreign and Equivalent Domestic Capital
9 months ago

Inclusion in Global Indices to Bring USD 40 bn Foreign and Equivalent Domestic Capital

Deccan Chronicle  

HYDERABAD: India’s inclusion in the JP Morgan Global EM Bond Index and Bloomberg EM Local Currency Government indices will see annual foreign investment of $30-$40 billion over the next five years and free up equivalent amount of domestic capital investment by the private sector, finds the World Bank. By 2023-end JP Morgan announced India’s inclusion in its Global EM Bond …

Various Measures Taken To Reduce Debt Burden, Strengthen Economy: FM Nirmala Sitharaman
10 months, 2 weeks ago

Various Measures Taken To Reduce Debt Burden, Strengthen Economy: FM Nirmala Sitharaman

News 18  

To bring down the debt burden, the government has taken various measures like increasing the tax revenue buoyancy, enhancing the public expenditure effectiveness, commitment to reducing fiscal deficit and augmenting the productive efficiency, Finance Minister Nirmala Sitharaman said on Monday. The government’s emphasis on increasing capital expenditure will not only boost the investments, but also return a higher GDP growth …

India’s Markets Are Turning Into an Inexorable Force
11 months, 1 week ago

India’s Markets Are Turning Into an Inexorable Force

Bloomberg  

Anyone wondering whether the India juggernaut is sustainable will find the answer in bonds, which have a penchant for discerning the way of the world and telling every other market what to do. At least $1 trillion of government securities traded multiple times annually in the most populous nation and biggest democracy are poised to become the darling of international …

India's external debt at $629.1 billion at June-end, says RBI data
1 year, 2 months ago

India's external debt at $629.1 billion at June-end, says RBI data

Hindustan Times  

India's external debt rose marginally to USD 629.1 billion at June-end 2023, although the debt-GDP ratio declined, according to a Reserve Bank data released on Thursday. RBI further said outstanding debt of the general government decreased, while non-government debt increased at end-June 2023 The debt rose by about USD 4.7 billion from USD 624.3 billion at March-end. US dollar-denominated debt …

India’s external debt rises to $629.1 billion at end-June 2023: RBI
1 year, 2 months ago

India’s external debt rises to $629.1 billion at end-June 2023: RBI

The Hindu  

India’s external debt at end-June 2023 was placed at $629.1 billion, recording an increase of $4.7 billion over its level at end-March 2023 according to data released by the Reserve Bank of India on September 28. Excluding the valuation effect, external debt would have increased by $7.8 billion instead of $4.7 billion at end-June 2023 over end-March 2023. Net outgo …

India's external debt at USD 624.7 bn within comfort zone, says FM Sitharaman
1 year, 3 months ago

India's external debt at USD 624.7 bn within comfort zone, says FM Sitharaman

Hindustan Times  

India's external debt of USD 624.7 billion at March-end 2023 with a debt-service ratio of 5.3 per cent is within the comfort zone and modest from a cross-country perspective, Finance Minister Nirmala Sitharaman has said. The report said the debt service ratio during 2022-23 has increased marginally to 5.3 per cent from 5.2 per cent during the previous year, mainly …

Budget 2023 may peg gross borrowing under ₹16 trillion: Report
1 year, 10 months ago

Budget 2023 may peg gross borrowing under ₹16 trillion: Report

Live Mint  

India's federal government is likely to keep its gross market borrowing below ₹16 trillion for 2023/24 as it does not want to destabilise the bond market with any negative surprises, two sources close to the deliberations said. The government has so far raised ₹12.93 trln up to Jan. 27, which is 91% of the overall gross borrowing target of ₹14.21 …

Govt bond market likely to see an explosion of new products in FY24
1 year, 11 months ago

Govt bond market likely to see an explosion of new products in FY24

Business Standard  

Govt bond market likely to see an explosion of new products in FY24 All the state governments now have a significant presence in the bond market, having sharply lowered their dependence on the Centre for borrowing ever since Covid struck Premium The volumes are expected to rise soon in FY24, from the Rs 16,000 crore earmarked to be raised from …

Market Borrowings of Centre, States Seen At Rs 24.4 Lakh Crore In FY2024: ICRA
1 year, 11 months ago

Market Borrowings of Centre, States Seen At Rs 24.4 Lakh Crore In FY2024: ICRA

News 18  

The government will peg its fiscal deficit in the FY2024 Budget Estimates at 5.8 per cent of the GDP, a healthy moderation from the 6.4 per cent of GDP projected for FY2023, according to a report by ratings agency ICRA. Aditi Nayar, chief economist and head of ICRA, said, “With a global growth slowdown looming large, the FY2024 Union Budget …

India's Forex Buffers Sufficient, Limited Risks to Sovereign Rating from External Pressures: Fitch
2 years, 2 months ago

India's Forex Buffers Sufficient, Limited Risks to Sovereign Rating from External Pressures: Fitch

News 18  

India’s external buffers are sufficient to cushion risks associated with rapid monetary policy tightening in the US and high global commodity prices, and risk to the sovereign rating from external pressure is limited, Fitch Ratings said on Wednesday. “India’s external buffers appear sufficient to cushion risks associated with rapid monetary policy tightening in the US and high global commodity prices,” …

Centre may rethink sovereign overseas borrowing proposal
4 years, 1 month ago

Centre may rethink sovereign overseas borrowing proposal

Live Mint  

A proposal for sovereign foreign borrowing that first found mention in the 2019-20 budget is back on the table at the finance ministry, and could figure in the government’s annual accounts statement next year, two people familiar with the development said. India’s sovereign external debt to gross domestic product is at less than 5%, among the lowest globally, and thus, …

Government debt-to GDP ratio to be at 80% by FY30: Report
4 years, 3 months ago

Government debt-to GDP ratio to be at 80% by FY30: Report

Deccan Chronicle  

Chennai: India’s general government debt-to-GDP ratio is likely to be at 80 per cent of GDP by FY30 and is unlikely to fall to the 60 per cent target even by FY40. India’s general government debt-to-GDP ratio is likely to be at 80 per cent of GDP by FY30 and is unlikely to fall to the 60 per cent target …

Govt may need RBI's help to fund budget deficit amid economic crisis: Report
4 years, 5 months ago

Govt may need RBI's help to fund budget deficit amid economic crisis: Report

India Today  

With the fiscal deficit already touching as high as 7 per cent of the GDP, the government has little room increase spending during the economic crisis. According to the report, the central bank may be asked by the administration to buy sovereign bonds directly or boost dividends to help generate additional revenue. The threat of another ratings downgrade looms large …

RBI buys so many US dollars that it ends up supporting debt market
4 years, 5 months ago

RBI buys so many US dollars that it ends up supporting debt market

Live Mint  

The Reserve Bank of India has accumulated so many dollars recently that it’s having a knock-on impact on the nation’s sovereign debt market. “The central bank’s FX policy is achieving multiple objectives of augmenting reserves, creating liquidity that’s helping demand for bonds, and at the same time curbing rupee volatility,” said Naveen Singh, head of fixed-income trading at ICICI Securities …

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