India's overseas debt plan fraught with risk and no real benefit: Rajan

A global bond sale won't reduce the amount of domestic government bonds the local market has to absorb, says Raghuram Rajan

India’s plan to issue foreign currency debt has no real benefit and is fraught with risks, according to former Reserve Bank of India governor Raghuram Rajan.

A global bond sale won’t reduce the amount of domestic government bonds the local market has to absorb and the country should worry about short-term “faddish investors buying when India is hot, and dumping us when it is not,” Rajan said in a column in The Times of India on Saturday.

Rajan adds to the growing chorus of opposition to the plan Finance Minister Nirmala Sitharaman announced earlier this month. The plan to sell