NEW DELHI (Reuters) - India will issue sovereign gold bonds from Nov. 26, offering an annual interest rate of 2.75 percent to domestic investors, a government statement said on Friday.
The bonds will be sold through banks and designated post offices and will be part of New Delhi's market-borrowing programme.
The decision to sell gold bonds is part of the government's plan to provide an alternative to purchasing the yellow metal.
Gold is India's second-biggest expense on the import bill after oil as the country consumes nearly 1,000 tonnes of the metal every year.
(Reporting by Manoj Kumar; Editing by Gopakumar Warrier)