India to Borrow Record 17.2 Trillion Rupees in FY27, Exceeding Market Estimates
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Firstpost•01-02-2026, 15:06
India to Borrow Record 17.2 Trillion Rupees in FY27, Exceeding Market Estimates
- •India plans to borrow a record 17.2 trillion rupees ($187.6 billion) in fiscal year 2026–27, surpassing most market expectations.
- •Finance Minister Nirmala Sitharaman's budget focuses on boosting the local manufacturing sector to accelerate economic growth.
- •Gross borrowing will increase by 17% from the current fiscal year's 14.61 trillion rupees, while net borrowing rises to 11.73 trillion rupees.
- •The higher bond supply is expected to put upward pressure on government bond yields, potentially keeping them elevated.
- •The government aims for a debt-to-GDP ratio of 55.6% and a fiscal deficit of 4.3% of GDP in the next fiscal year.
Why It Matters: India's record borrowing plan for FY27 will likely elevate bond yields despite economic growth focus.
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