Indian States to Borrow Record 5 Trillion Rupees in Final Quarter
Indian states are set to borrow a record 5 trillion rupees in the January-March quarter, marking the highest quarterly borrowing ever. This comes amid weakened bond demand, which is expected to push up yields on central and state debt.
Insights:
The Reserve Bank of India (RBI) has announced that Indian states are poised to borrow a record 5 trillion rupees in the final quarter of the financial year, from January to March. This unprecedented borrowing spree would mark the highest quarterly borrowing by Indian states and push annual state borrowing to an all-time high. Throughout the first three quarters of the financial year, states have already raised 7.13 trillion rupees via bond sales.
