Ex-RBI chief backs govt's plan to raise $10 bn from first foreign bond sale

India’s decision to sell its maiden overseas sovereign bond has been panned by at least two former central bank chiefs, but the government’s plan has just found support in another ex-governor who thinks it’s a good idea.

Former Reserve Bank of India Governor Bimal Jalan joined the debate on whether or not the nation should go for an offshore bond sale, saying India’s fundamentals supported the case for going ahead with the fund raising.

“At the moment we are in a fortunate position. Our debt to GDP ratio is not very high, exchange rate is stable, and foreign exchange reserves are high,”