Savers With as Little as $1.5 Key to Modi Keeping Budget Promise
- Small savings inflow seen at record 1 trillion rupees for FY18
- Morgan Stanley calls it aggressive; DBS says it’s ambitious
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Prime Minister Narendra Modi is relying on a record bounty from millions of savers contributing as little as $1.5 to keep to his government’s target for market borrowings next year. Morgan Stanley and Citigroup Inc. say he may be expecting too much.
The administration estimates small-savings plans will lure 904 billion rupees ($13.4 billion) in the current financial year, more than four times what was initially budgeted, and another 1 trillion rupees in the year starting April 1. Morgan Stanley calls the government’s target for next year is “aggressive” and projects collections will be half that amount.