India's net government borrowing in the next fiscal is likely to remain largely unchanged. The central government is expected to target a narrower fiscal deficit of 5.3%-5.6% of GDP in FY25, leading to a net borrowing of 11.80 trillion to 12.20 trillion rupees. Foreign investors are expected to invest $25 billion-$30 billion in government debt, with a significant portion being absorbed by foreign portfolio investment. This increase in foreign portfolio investment is driven by the inclusion of government bonds in the JPMorgan emerging market debt index starting June 2024.
