PM Modi's record debt sales before polls to pressure Indian bonds

Investors have turned skittish about the health of India's finances amid signs that the government is ready to sacrifice fiscal discipline as it weighs an aid package to appease farmers

After posting the best quarter in four years, Indian bonds are pitted against a familiar foe: likely record debt sales by the government to finance populist measures before national elections due by May.

Prime Minister Narendra Modi’s administration may announce Friday plans to borrow Rs 6.4 trillion ($90 billion) for the next fiscal year in its budget, according to the median estimate of 15 strategists in a Bloomberg News survey. That compares with a revised Rs 5.35 trillion for the current year.

Investors have turned skittish about the health of India’s finances amid signs that the government is ready to sacrifice fiscal