A surge in global bond yields and a fresh wave of capital demand from the artificial intelligence boom could make funding more expensive for emerging economies, but India is continuing to attract record foreign investment as global companies increasingly look to build capacity in the country, Economic Affairs Secretary Anuradha Thakur said.
Thakur, speaking at the Kautilya Economic Conclave, said the changing dynamics of global debt markets were becoming increasingly important for economies that rely on international capital. Governments worldwide are borrowing heavily, while investors are demanding greater returns to compensate for inflation, fiscal uncertainty and longer-duration risks.
