Govt's plan to sell its first foreign sovereign bonds a risky money idea?

A key nationalist ally of Modi's ruling Bharatiya Janata Party has called the proposal a 'dangerous idea', which could lead India into a debt trap

India's plan to sell its first foreign sovereign bonds is facing opposition from a key ally of Prime Minister Narendra Modi, and raising worries among investors and ex-central bankers.

Authorities are pushing ahead with the move to raise as much as $10 billion from overseas capital markets, a proposal first flagged by Finance Minister Nirmala Sitharaman in her debut budget this month. The government wants to diversify its borrowing, which has so far been limited to the domestic market, and create a benchmark for future bond sales. With global interest rates low and falling, officials see the timing as favorable