He said the government’s recent steps to include Indian bonds in global indexes opens the door for unstable foreign capital inflows and policy makers must be vigilant about the nation’s banking sector.
India must keep public finances relatively healthy to stave off a possible second wave of risks in the financial sector once the coronavirus crisis abates, said a former central bank governor.
While calls for a stimulus are rising, India cannot risk a significant widening of its perpetually high budget deficit, Urjit Patel wrote in the Financial Express newspaper.
He said the government’s recent steps to include Indian bonds in global indexes opens the door for unstable foreign capital inflows and policy makers must be vigilant about the