India to Raise 8.2 Trillion Rupees via Bonds in First Half
India will borrow 8.2 trillion rupees in the first half of the fiscal year. The plan reduces ultra-long bond supply to help stabilize rising market yields.
The federal government of India has outlined a plan to raise 8.20 trillion rupees ($86.38 billion) through bond auctions in the first half of the 2026-27 fiscal year. This amount represents 51% of the total annual borrowing target, a figure slightly lower than the front-loading seen in previous years. The finance ministry's strategy involves a reduction in the issuance of ultra-long-term debt, specifically 30-to-50-year bonds, which will now account for 24.9% of the supply compared to 35% in the same period last year.
The total gross borrowing for the year was initially set at 17.20 trillion rupees in the February budget, though subsequent bond switch operations have adjusted this figure down to 16.09 trillion rupees. This announcement comes amid a volatile period for Indian assets. Markets have reacted to the geopolitical tensions involving Iran, which have triggered energy shocks and dampened the economic outlook. These factors pushed the 10-year bond yield to a 20-month high of 6.95% earlier in the day, and the rupee slipped past the 94-per-dollar level for the first time.
