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Rising interest rates likely to hurt India's economic growth

To stop this outflow, the Reserve Bank of India (RBI) late on Friday allowed foreign investors to invest in any maturity they want

Anup Roy  |  Mumbai 

Various estimates suggest that India could grow at 7.5 per cent this fiscal, but such a growth rate would likely be hampered if the interest rates remain at elevated levels. The 10-year yields on government bonds (G-secs) are a good gauge of the medium term interest rate trajectory, and those yields are on the rise.

The foreign portfolio investors (FPIs) are liquidating their fixed income portfolio, and at an increasing pace in the past three months, leaving the market at the hands of domestic money. That seemed to be not enough. At the start of September, 2017, the 10-year ...

First Published: Wed, May 02 2018. 07:05 IST