India's national debt is expected to be difficult to stop deteriorating, with pressure from the US's high tariffs leading to concerns about increasing government debt.

The price of Indian government bonds has fallen to the lowest level in four months, with analysts warning that the market may continue to decline. Investors are worried that the government may increase borrowing to finance fiscal stimulus in response to the high tariffs imposed by the United States. The yield on India's 10-year benchmark government bonds rose to 6.44% on Tuesday, the highest level since April this year. Standard Chartered Bank predicts that the yield on the bond may further increase to 6.6% by the first quarter of next year.