Borrowing limit raised, but states won't rush to make use of the chance

Only eight states will qualify for the extra borrowing, as they have to meet stiff conditions on ease of doing business.

The extra borrowing provision for states has not unsettled the bond market much. This is because, according to a back-of-hand calculation, most states get automatically excluded, given the conditions.
 

Instead of rising on account of oversupply fears, the 10-year bond yield — on the contrary — closed at 5.774 per cent from its previous level of 5.78 per cent.

Soumya Kanti Ghosh, chief economic advisor of State Bank of India, noted that only eight states qualified for the extra borrowing, given the broad conditions on ease of doing business, power distribution rank, and number of urban local bodies. One nation, one