Mumbai: Spending on social and physical infrastructure, climate mitigation,digitalisation and skilling the labour force can yield long-lasting growth dividends. The Reserve Bank of India (RBI) deputy.
Speaking to reporters after the presentation of the interim Budget, Finance Secretary TV Somanathan also said India s debt-to-GDP ratio is one of the lowest in the G20.
India is poised to sell a near-record amount of debt in the coming fiscal year, pressuring a sovereign bond market that’s increasingly worried about support from the central bank. Prime Minister Narendra Modi’s government may announce a gross borrowing plan of 10.6 trillion rupees ($145 billion) for the 12 months starting April in its budget announcement on Feb. 1, according to a median forecast of 15 analysts surveyed by Bloomberg News. That’s less than the record 13.1 trillion rupees estimated for the current year, but 75% above the previous five years’ average. As a result, the 10-year sovereign bond yield may rise about 40 basis points from current levels to 6.30% by end-December, its first advance in three years, a separate survey showed.