Indian official: Will ensure record borrowing program does not disrupt markets

A senior official from the Indian Ministry of Finance said on Tuesday that the Indian government will use a variety of tools, including bond swaps, to ensure that its record borrowing plan for the new fiscal year starting in April does not disrupt the market or push up yields. Economic Affairs Secretary Anuradha Thakur said the borrowing plan would ensure competitive rates and not "disrupt" the market. "Healthy markets are equally important to us," she added, noting that uncertainty related to the US-India trade deal has been eliminated, boosting investor confidence. Thakur said that with the trade deal in place, "foreign securities investment sentiment will change... and the rupee has already started to appreciate." Previously, the Indian bond market has been impacted by massive government borrowing. Investors currently expect record debt offerings from the central and state governments in the next fiscal year amounting to 30 trillion rupees, while the easing cycle of the Reserve Bank of India is nearing its end.