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India Plans Record Borrowing to Fund Modi’s Growth Ambitions

  • Gross borrowing pegged at $200 billion for next fiscal year
  • Government sets budget deficit target at 6.4% of GDP
The Mahatma Gandhi statue at Parliament House on the opening day of the Budget Session in New Delhi. Photographer T. Narayan/Bloomberg
The Mahatma Gandhi statue at Parliament House on the opening day of the Budget Session in New Delhi. Photographer T. Narayan/BloombergPhotographer: T. Narayan/Bloomberg
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India doubled down on its spending commitment, relying on an already swamped debt market to borrow and spend big to spur growth. Bonds tumbled and stocks rose.

Prime Minister Narendra Modi’s administration will target a budget deficit of 6.4% of gross domestic product for the year starting April 1 -- wider than the median 6.1% seen in a Bloomberg survey -- as it prioritizes growth over fiscal consolidation.