Worst Asian bond market has more to fear: the spectre of Modi's borrowings

The timing for India to sell an estimated record amount of debt couldn’t be worse.

Prime Minister Narendra Modi’s government will seek to borrow Rs 6.5 trillion (Rs 6.5 lakh crore, $102 billion) in the fiscal year starting April 1, according to the median estimate of 15 fixed-income strategists and economists before Thursday’s budget. That compares with the Rs 6.05 trillion (Rs 6.05 lakh crore) expected for the current year.

Whereas falling oil prices and bond yields have benefited Modi since he took power in 2014, their steep ascent in the past year is posing a threat. The expected debt