States to raise more debt from market

State borrowing through state development loans (SDLs), which had briefly eased in October after a surge earlier in the year, rose again in November as several major states returned to the market with large auctions, according to the latest Reserve Bank of India (RBI) data.

- Rhik Kundu

In November, several major states returned to the market with large auctions.

(MINT)

The reversal marks a sharp year-on-year swing. States borrowed ₹65,827 crore in November, compared with ₹55,006 crore a year ago and ₹6,000 crore in October, indicating that fiscal pressures have intensified as the calendar year draws to a close. States mobilized ₹84,842 crore in October 2024.

Between April and November (8MFY26), states raised ₹5.08 trillion against a scheduled ₹7.39 trillion for the period according to the borrowing calendar, but more than last year’s ₹5.01 trillion.

To be sure, November's issuance came mostly from a few large borrowers.