Public Debt Management in India and Related Issues

This study focuses on the marketable domestic public debt of the Government of India (GoI) in terms of size, magnitude, policy and approach followed and also discusses issues and challenges on debt management. Though various factors decide the yield in the primary auction, which include the growth in the economy, market conditions, ruling interest rate, long term perspective on the inflation expectations, etc., in a deficit liquidity scenario, the main determinants may be the ruling short term interest rate (repo, MSF) that determines the cost of fund and the availability of market liquidity. Thus, how far these short term factors influence the yield in the primary auctions is the focus of this paper.