InvestorQ : What are the effect of US budget on indian economy ?
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What are the effect of US budget on indian economy ?

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Aashna Tripathi answered.
2 years ago
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The US budget period stretches from October 01 to September 30 of the next year. The most important takeaway for India from the US budget is that the budget deficit is an indicator of the bond yields in the US economy. This indirectly impacts the borrowing costs in Indian markets too. For the Budget year 2019-20, the US government has projected revenues of $3.64 trillion and spending $4.75 trillion leaving a budget deficit of $1.1 trillion. However, this deficit is at the same level as last time and that would mean that the chances of US bond yields going higher rare limited.

That is good news for India because the RBI can now sustain its rate cut program for some time as real rates are still above the 3% mark in India.
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