Montek Singh Ahluwalia, the noted economist who headed the Planning Commission, has advised the Modi regime against its plans to tap the overseas debt market, saying the idea of sellingsovereign bonds was contemplated earlier as well but abandoned as the negatives far outweighed the positives.
The comments from the UPA-era technocrat come amid a proposal from the Narendra Modi Government to borrow at least Rs 70,000 crore of its planned market borrowings from a sovereign bonds sale overseas, in a departure from the earlier practice of raising the money domestically alone.
We thought it will do us more damages than gains, Ahluwalia role PTI over the weekend here.
When asked about the rationale of setting benchmark rates, he expressed doubts if the market will be liquid.