Indian Government to Introduce an Indian Sovereign Bond to the World

The government has a tentative plan to introduce an Indian sovereign bond to the world. It can be used to mop up at least $10 billion, or about Rs 70,000 crore. The total sovereign debt at the end of March 2019 stood at $103.8 billion. It was 3.8% of the GDP.

India external debt to gross domestic product (GDP) is among the lowest globally at less than 5%. This will also have a beneficial impact on demand situation for the government securities in the domestic market.

The Finance Bill showed that the net borrowing would be Rs.4.73 trillion, and the gross borrowing would be Rs.7.10 trillion. This is the same as the interim budget. The bond yields climbed back.

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