India Debt

The benchmark 10-year yield is likely to move between 6.85 per cent and 6.89 per cent till the debt auction

At nearly 82 per cent of GDP, India's public debt is very high, but the country doesn't face debt sustainability issue on account of high growth rate and higher share of local currency debt, NCAER Director General Poonam Gupta has said. Participating in an event organised by NCAER, Gupta said India's high debt levels are sustainable for now because of higher real or nominal GDP and as most of the debt is held in rupee. The states together hold one-third of the total debt, and in the 'business as usual' situation, their debt levels will only increase further over the next five years, Gupta said. "In a handful of states like Punjab and Himachal Pradesh, Debt-to-GDP ratio could increase by 50 per cent," Gupta said, adding that the states, including the most indebted ones, also don't face sustainability issue as they have implicit guarantee of the Centre and as states cannot hold debt in foreign currency or floating rate. Drawing a comparison between Punjab, one of the most indebted ..

Reserve Bank of India (RBI) will release the minutes of its June policy meeting after market hours on Friday

Pictet, one of Europe's largest fund managers, manages debt worth around $2.67 billion in its local currency emerging market fund

Indian government bonds are set to be included in the JPMorgan Emerging Market local currency debt index from June 28

Traders were also cautious after the 10-year US yield moved off its recent lows, but continued to remain around the 4.35 per cent mark.

The country's total debt, or the total outstanding bonds which are being traded in the market, rose to USD 2.47 trillion (Rs 205 lakh crore) in the September quarter, according to a report. The total debt amount in the March quarter of the previous fiscal was USD 2.34 trillion (Rs 200 lakh crore). The central government's debt stood at USD 1.34 trillion, or Rs 161.1 lakh crore, in the September quarter, up from USD 1.06 trillion, or Rs 150.4 lakh crore, in the March quarter, Vishal Goenka, Co-Founder of Indiabonds.com, said, quoting data provided by the Reserve bank of India. Indiabonds.com, which was launched in 2021, is a Sebi-registered online bond platform that provides investing solutions. The report is a collation of data from the RBI, Clearing Corporation of India, and the Securities and Exchange Board of India. At Rs 161.1 lakh crore, the central government's debt constitutes the highest 46.04 per cent share of the total amount. State governments' debt share was 24.4 per

General govt debt may exceed 100% of GDP in medium term, warns Fund

However, the status paper maintained that the risk profile of India's government debt stands out as safe and prudent

Company discharged the debt by way of monetisation of assets, auto debits by banks

These would be raised in the form of secured, unrated, unlisted, redeemable NCDs in one or more tranches, the company said

The Congress on Saturday alleged that India's debt has nearly "tripled" to Rs 155 lakh crore in the nine years under Prime Minister Narendra Modi and demanded a white paper on the state of the economy. Congress spokesperson Supriya Shrinate claimed that the Modi government's "economic mismanagement" is responsible for the present state of the economy and claimed that Rs 100 lakh crore of debt has been added since the present dispensation assumed charge in 2014. "As chief minister of Gujarat, Mr Modi used to blame those on the other side of the political spectrum as inefficient, incompetent and corrupt -- adjectives that today suit him and his government more than anyone else. "After ruining India's economic growth story, creating huge unemployment, raging inflation, Mr Modi has done the unthinkable, which is an addition of over Rs 100 lakh crore to India's debt, which is at an alarming level," she said at a press conference. The Congress leader also said India's debt in 2014 was at

India's external debt stood at USD 610.5 billion in the second quarter of 2022-23, down by USD 2.3 billion from end-June 2022, the finance ministry said on Thursday. The external debt to GDP ratio stood at 19.2 per cent as at end-September 2022 as compared to 19.3 per cent at end-June. "At end-September 2022, India's external debt was placed at USD 610.5 billion, recording a decrease of USD 2.3 billion over its level at end-June 2022," it said. Valuation gains due to the appreciation of the US dollar vis--vis major currencies such as the euro, yen and Indian rupee was placed at USD 10.6 billion. "Excluding the valuation effect, the increase in external debt would have been USD 8.3 billion instead of a decrease of USD 2.3 billion at end-September 2022 over end- June 2022," it noted. At end-September 2022, long-term debt (with original maturity of above one year) was placed at USD 478.7 billion, recording a fall of USD 8 billion over its level at end-June 2022, it said. On the othe

Moody's Investors Service on Tuesday said the trend of gradual fiscal consolidation remains intact for India and going forward the country will see strong revenue performance and debt stablisation. Moody's Investors Service Senior Vice President Christian de Guzman said India's 'Baa3' sovereign rating balances its strength of relatively high economic growth and weakness of one of the most highly indebted emerging market sovereigns. The country's healthy financial system is reflected in deleveraging by Indian corporates. "We expect that India is going to be the fastest growing G-20 economy next year... (but) high inflation pose a downside risk to India's growth as households and businesses have less purchasing power," Guzman said in a Moody's virtual event 'Sovereign Deep Dive'. Moody's had earlier this month cut India's growth projection for 2022 to 7 per cent, from 7.7 per cent projected earlier. It expects growth to decelerate to 4.8 per cent in 2023 and then to rise to around 6.4

The aggregate indebtedness of states, is expected to remain elevated at 30-31 per cent this fiscal, almost similar to 31.5 per cent of last fiscal, Crisil report said

There must be a warning in the fact that some of the most problem-ridden middle-income economies have big govts, big deficits, high levels of debt and large-scale corruption, writes T N Ninan

After falling for six weeks on the trot, the cost of borrowings for the states rose for the second week with the latest auction on Tuesday, when their average cost of debt rose by 9 bps to 7.65 per cent. At the last auction, the average cut-off rose by 10 bps to 7.56 per cent, which was the first spike in the past six weeks. The spike in average cost reflects the overall interest tightening taking place in the system after the US Fed went ahead with its third 75 bps hike last week and said it will deliver at least two more to fight inflation, which is trending at over 40 years high. The weighted average cut-off of state debt rose by 9 bps to 7.65 per cent from 7.56 per cent in the last auction, with the weighted average tenor remaining stable at 15 years. On the other hand, the 10-year Ge-Secs yield inched up by 3 bps to 7.29 per cent, Aditi Nayar, the chief economist at Icra Ratings said in a note. The weighted average cut-off for the 10-year state debt increased by 12 bps to 7.67

Public sector Bank of Baroda on Friday said it has subscribed to 99,000 shares of asset reconstruction company India Debt Resolution Company Ltd (IDRCL).

The government informed Parliament that it expects the total debt as percentage of GDP to increase to 61.7 per cent (provisional) in 2021-22 from 60.5 per cent (provisional) in the previous fiscal.

India's government debt is expected to remain elevated at 83 per cent of GDP