Letter to BS: Trump-disruption era of uncertain duration is upon us

The banking sector and bond market reforms were soft-pedalled when global economy was in better shape

This refers to “Develop corporate bond market sustainably” (August 20). The Indian economy is slowing and the central bank is cutting interest rates. But the cost of long-term money is refusing to budge. What could be troubling the market is the unknown quantum of public spending via borrowings, that are but sovereign liabilities, beyond the Rs 7 trillion fiscal gap. The FCI alone has borrowed over Rs 2 trillion, most of it from non-market sources as EPF, postal savings, stressing the need for deepening of the Indian corporate bond market to meet the funding requirement of the infrastructure sector, particularly