India Budget to Lift Borrowing to Record, Testing Bond Yields

Indian traders are bracing for a year of record government debt supply, which may keep borrowing costs elevated in the nation’s $1.3 trillion bond market.

Finance Minister Nirmala Sitharaman’s Feb. 1 budget may set the gross borrowing 11% higher at 16.5 trillion rupees ($180 billion) in the fiscal year starting April 1, according to the median estimate of 21 economists in a Bloomberg survey.