Now the fiscal math is muddled, bond yields are spiking, the central bank might have to raise rates in response and India is turning protectionist. Yields on India’s 10-year government security shot up 18 basis points after the budget was presented. In response, Modi and Jaitley have taken a sharp turn towards populism. For decades, in budget after budget, Indian governments have lowered the country’s once-formidable tariff barriers. Now the fiscal math is muddled, bond yields are spiking, the central bank might have to raise rates in response and India is turning protectionist.

Source: Mint February 02, 2018 05:26 UTC