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Discord over sovereign bonds: six reasons why Sitharaman should stick to her guns

India isn’t new to foreign-currency liabilities. The current global environment characterised by low growth and ultra-low yields makes it the right time to issue offshore sovereign bonds. The tool will also serve as a benchmark for future overseas borrowings to fund big-ticket investments.
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5 Aug 2019 8 Mins Read 1 comments
Prime Minister Narendra Modi speaks at the inaugural session of the UP Investors' Summit - 2018 at the Indira Gandhi Pratishthan, on February 21, 2018 in Lucknow. Getty Images
Prime Minister Narendra Modi speaks at the inaugural session of the UP Investors' Summit - 2018 at the Indira Gandhi Pratishthan, on February 21, 2018 in Lucknow.
As Subhash Chandra Garg was shunted to a relatively low-profile power ministry from the glitters of finance, all whispers of a demotion pointed to one direction – disagreement in the government over the proposed sovereign bonds. Garg is believed to be a strong backer of raising a part of the government’s borrowing from the overseas markets in foreign
growth, ultra-low global interest rates, a stable political formation at the Centre, and 7%-plus growth rate – has created an opportunity like never before. The finance ministry will have to ensure that the idea of borrowing from external sources in foreign currencies cuts ice with all the stakeholders. Over to the finance minister. ( Graphics by Sadhana Saxena)
As Subhash Chandra Garg was shunted to a relatively low-profile power ministry from the glitters of finance, all whispers of a demotion pointed to one direction – disagreement in the government over the proposed sovereign bonds. Garg is believed to be a strong backer of raising a part of the government’s borrowing from the overseas markets in foreign growth, ultra-low global interest rates, a stable political formation at the Centre, and 7%-plus growth rate – has created an opportunity like never before. The finance ministry will have to ensure that the idea of borrowing from external sources in foreign currencies cuts ice with all the stakeholders. Over to the finance minister. ( Graphics by Sadhana Saxena)

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