Amid economic slowdown, Modi govt sticks to FY18 borrowing target

Modi's top policy advisers have called for stepping up government spending

India’s government on Thursday stuck to its budgeted market borrowing target for the fiscal year ending in March 2018 but held out the possibility of selling additional bonds to fund any new spending.

An economic slowdown following the launch of a nationwide Goods and Service Tax (GST) in July have put federal revenues under pressure, raising worries that New Delhi will struggle to trim its fiscal deficit.

Separately, the Reserve Bank of India said on Thursday it would raise the foreign investment limits for government bonds by 80 billion rupees to 2.5 trillion rupees for the October-December quarter.

The action came