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Andy Mukherjee

The Bond Market's 2018 Message for Modi

Go easy on the fiscal sauce.
Modi Inauguarates Gujarat Bourse to Rival Singapore
Dhiraj Singh/Bloomberg

One year ago, India’s bond market was riding a wave of unprecedented liquidity. Now it’s mired in all kinds of doubts, ending 2017 weaker than Chinese sovereign debt when the opposite outcome would have been more natural. After all, India saw a ratings upgrade by Moody’s Investors Service during the year, while China was downgraded.

The message for Prime Minister Narendra Modi is clear: in 2018, go easy on the fiscal sauce.