Budget 2019: An investment-led growth, says ICICI Prudential MF MD & CEO

One should be mindful that this gush of debt capital in the short term is likely to support rupee appreciation in the near term

The first steps to India being a $5trillion economy by FY25 were taken by the finance minister through Budget 2019. The government through its various measures is aiming to reduce the cost of capital to boost the economy at large. Given that India’s external debt is currently low, the proposal of raising sovereign debt externally is a positive initiative. However, at a time when the Japanese 10-year bond yield (-0.16 per cent) and German 10-year bond yield (-0.38 per cent) is in the negative territory, there could be a possibility of huge inflows into a good sovereign nation like India.