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Borrowing from Overseas Markets
July 14 , 2019
1966 days
858
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- Union Government plans to raise a portion of its gross borrowing from overseas markets.
- So far, the government of India has only issued bonds in the domestic market.
- It now plans to issue overseas sovereign bonds.
- Government issues bonds with the promise to pay periodic interest payments and also repay the entire face value of the bond on the maturity date.
Concerns
- Overseas borrowing will lead to a stronger rupee.
- A stronger rupee would encourage imports at a time when the government is trying to curb them.
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