India is set to borrow Rs 7.86 lakh crore through dated securities in the second half of FY27, marking a strategic move that includes green bonds and debt management tools amid a reduced borrowing target, influencing market liquidity and yields.
India plans to borrow Rs 7.86 lakh crore through dated securities in the second half of financial year 2026-27, according to the Finance Ministry’s borrowing calendar released on Friday, in a move that adds to a market programme already being trimmed from the original budget estimate. The latest schedule comes after the government cut its gross market borrowing target for FY27 to Rs 15.99 lakh crore from Rs 17.20 lakh crore, implying a reduction of Rs 1.21 lakh crore from the budgeted figure.
The second-half plan includes Rs 15,000 crore of sovereign green bonds, reinforcing the government’s use of sustainable-finance instruments even as it scales back overall issuance. The ministry said it will also borrow Rs 23,000 crore a week through Treasury Bills in October to December, while continuing to use switching and buybacks to manage the debt maturity profile. Five-year securities will account for 12.1% of borrowing in the period, while three-year bonds will make up 6.9%.
The calendar also sets the Ways and Means Advances limit for the second half at Rs 50,000 crore, a short-term facility used to bridge temporary gaps between receipts and spending. Bond traders will be watching the programme closely for its effect on liquidity and sovereign yields, particularly because large government supply can influence demand across the debt market.
The second-half schedule follows the government’s earlier plan for the first half of FY27, when it said gross market borrowing after switches would be Rs 16.09 lakh crore, with Rs 8.20 lakh crore to be raised through dated securities, including Rs 15,000 crore of green bonds. That H1 programme was to be completed through 26 weekly auctions across maturities ranging from three to 50 years, with Treasury bill issuance and the RBI’s WMA limit also set out as part of the financing framework.
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