India to Borrow Record 17.2 Trillion Rupees in FY27, Exceeding Market Estimates

• India plans to borrow a record 17.2 trillion rupees ($187.6 billion) in fiscal year 2026–27, surpassing most market expectations.
• Finance Minister Nirmala Sitharaman's budget focuses on boosting the local manufacturing sector to accelerate economic growth.
• Gross borrowing will increase by 17% from the current fiscal year's 14.61 trillion rupees, while net borrowing rises to 11.73 trillion rupees.
• The higher bond supply is expected to put upward pressure on government bond yields, potentially keeping them elevated.
• The government aims for a debt-to-GDP ratio of 55.6% and a fiscal deficit of 4.3% of GDP in the next fiscal year.

Why It Matters: India's record borrowing plan for FY27 will likely elevate bond yields despite economic growth focus.