The Finance Ministry has said that the economy is likely to record reasonable growth and moderate inflation and is expected to remain resilient despite global uncertainties.
“For the years 2015-16 to 2017-18 debt strategy, it is assumed that the economy will record moderate to reasonable growth, a moderation in inflation as per the path projected by Reserve Bank and financial stability. Notwithstanding global uncertainties, the Indian economy is expected to remain resilient due to favourable domestic macroeconomic factors backed by stable growth with low inflation,” it said on Thursday as part of the Medium-Term Debt Management Strategy for 2015-18.
Outlining its plan for raising debt over the next three years, the Finance Ministry said that it would aim to raise it at a low cost and work on improving investor relations. “Low cost is sought to be achieved over medium to long-run by formulating appropriate issuance strategy while at the same time developing the financial market,” it said, adding that proper demand estimation, planned issuance and offer of appropriate instruments would also aid in lowering costs.
Noting that regular meetings with investors has kept them well informed about the government’s debt management strategy, it further said the consultative process and proactive investor relations would continue during the medium term debt management strategy period as well.
According to the report, the Centre’s internal debt was ₹52,78,217 crore or 37.4 per cent of GDP for 2015-16 and consisted of fixed market borrowing.
Dated securities ₹44,17,787 crore and accounted for 78.09 per cent of public debt while Treasury Bills ₹4,20,365 accounted for 7.43 per cent.