Govt to start raising part of its gross borrowings from external markets: FM

Finance Minister Nirmala Sitharaman Friday said the government would start raising a part of its gross borrowing programme in the external markets in foreign currencies. Presenting the first Budget of the Narendra Modi government in its second term, she said India's sovereign external debt to GDP level is among the lowest globally at less than 5 per cent.

"The government would start raising a part of its gross borrowing programme in external markets in external currencies. "This will also have a beneficial impact on demand situation for the government securities in the domestic market," Sitharaman said.

Chief Economic Adviser K V Subramanian had also on Thursday said that the cost of capital internationally is low while liquidity is very high there. "As a result, there is an opportunity both for the firms and sovereigns as well to think about going and raising money abroad," he had said.