Special-series bonds could be over 10% of FY21 gross borrowing target

Amount of debut issue and subsequent tranches will be finalised by FinMin, RBI in end-March

India is planning a massive debut issue of special-series government bonds, upwards of Rs 10,000 crore, in the first half of 2020-21. This will be followed by multiple tranches, which could combine to be more than 10 per cent (Rs 80,000 crore) of the FY21 gross borrowing estimate of Rs 8.1 trillion, helping India get a substantial weight after its inclusion in global bond indices. 

“The Finance Ministry’s view is that the share of special-series bonds in a year should be more than 10 per cent of the total borrowing requirements. The amount of the debut tranche and subsequent tranches will