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Abstract

Presenting India’s 2019 budget on July 5, Finance Minister Nirmala Sitharaman sketched out the Modi government’s vision of becoming a $5 trillion economy by 2024, almost doubling the country’s current gross domestic product (GDP) of $2.73 trillion. To achieve this ambitious goal, India plans to liberalize foreign direct investment (FDI) rules and tap international bond markets to fund its budget deficit. The latter is a risky enterprise and ensures exchange rate policy becomes a future battleground. However, India’s economic growth has been slowing over the past two quarters, and the government has limited options to raise funds domestically, forcing it to look at external foreign currency borrowing. The government is betting that external borrowing combined with FDI inflows will lead to greater domestic investment and thus higher growth. 

Authors

Yagyavalk Bhatt

Yagyavalk Bhatt

Research Associate Yagyavalk is a senior research analyst who has worked on developing the KAPSARC Renewable Energy Policy Atlas and the KAPSARC…

Expertise

  • Energy market
  • renewable energy transition and climate finance

Publications See all Yagyavalk Bhatt’s publications

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Political Feasibility of Enhancing India’s Midcentury Target for Emissions Intensity

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India’s Increasing Imports of Crude Oil

India’s Increasing Imports of Crude Oil

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Paul Mollet

Paul Mollet

Research Fellow Paul is a research fellow in the Policy and Decision Sciences program. He is a former journalist and energy market…

Expertise

  • Energy transition
  • climate change and oil markets

Publications See all Paul Mollet’s publications

Political Feasibility of Enhancing India’s Midcentury Target for Emissions Intensity

Political Feasibility of Enhancing India’s Midcentury Target for Emissions Intensity

Presenting India’s 2019 budget on July 5, Finance Minister Nirmala Sitharaman sketched out the Modi…

September 18, 2019
US Rolls Back Regulation but the Oil Industry Moves Forward

US Rolls Back Regulation but the Oil Industry Moves Forward

Presenting India’s 2019 budget on July 5, Finance Minister Nirmala Sitharaman sketched out the Modi…

September 12, 2019
Jitendra Roychoudhury

Jitendra Roychoudhury

Research Fellow Before joining KAPSARC, Jitendra was a director and chief consultant at HDR|Salva, India, where he led a number of cross…

Expertise

  • Indian energy and coal

Publications See all Jitendra Roychoudhury’s publications

India’s Oil Imports: Achilles’ Heel or Economic Javelin?

India’s Oil Imports: Achilles’ Heel or Economic Javelin?

Presenting India’s 2019 budget on July 5, Finance Minister Nirmala Sitharaman sketched out the Modi…

August 21, 2019
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