CEA Krishnamurthy Subramanian, Says 'Right Time for India to Raise Funds Through Sovereign Bonds to Improve Economy'
Chief Economic Adviser Krishnamurthy Subramanian. (Photo Credit: ANI)

New Delhi, July 9: Days after the Finance Minister Nirmala Sitharaman presented the Union Budget 2019 in the Parliament, Chief Economic Adviser Krishnamurthy Subramanian said on Tuesday that to improve the Indian economy, the government should raise funds through overseas sovereign bonds at a much cheaper rate compared with those in the domestic market.

Sharing an opinion during an event in the national capital, the CEA stated that the government will study "risks and returns" to raise funds through sovereign bonds, possibly in the second half of the current financial year, reports global news agency Reuters. WPI Inflation Declines To 2.45% in May 2019, Touches 2-Year Low

Subramanian even expressed that in order to raise about 10-15 percent of proposed Rs 7.1 trillion (USD 103.18 billion) government borrowings this FY 19-20 through sovereign bonds, the opportunity should be harnessed. This statement comes as Sitharaman - during her maiden Union Budget 2019 speech - claimed that India is looking towards becoming the third largest economies of the country by 2024 at USD five trillion.

In other news, a recent poll by the news agency claimed that India's retail inflation is likely to reach an eight-month high in June on rising food prices. However, it also claimed that the inflation stayed under the Reserve Bank of India's medium-term target of four percent for an eleventh straight month. The inflation in June raised to 3.20 percent from May 3.05 percent. It can also be known that the fiscal deficit target for this financial year was reduced to 3.3 per cent from 3.4 percent.