Bank of America Sees Foreigners Rushing to Fund Spending by Indian States
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A farmer uses cows to plough his field in Bihar. Prime Minister Narendra Modi is pushing state leaders to play a greater role in jumpstarting an economy that is expanding below potential even as it boasts one of the world’s fastest growth rates.
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Overseas funds are allowed to buy the notes from Monday
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States set to outstrip federal spending first time in six yrs
India is opening the door to foreigners to prod its powerful state governments into doing more to boost economic growth.
Starting Monday, overseas investors can buy as much as 500 billion rupees ($7.7 billion) of state debt through 2018 after the central bank opened the sector to develop India’s financial markets. Barclays Plc and Bank of America Merrill Lynch see strong demand for the bonds, which are as safe as sovereign notes and offer yields about 50 basis points higher…
Bank of America Sees Foreigners Rushing to Fund Spending by Indian States
