The Indian government is unlikely to increase its second half borrowing when it announces its full-year target this month, but will leave room for any hike towards the end of the fiscal year in March if needed, economists and market participants said. The federal government has already borrowed more than half of the planned full year borrowing of a record 12 trillion rupees ($162.36 billion) in the fiscal first half that runs through September, and the government is likely to finish borrowing the rest by January, economists said. “Given the highly uncertain outlook on the fiscal math, H2 borrowings might be completed by early 2021, with any larger-than-expected revenue shortfalls to be plugged thereafter by additional issuance,” said Radhika Rao, an economist with DBS.
