India Shifts Fiscal Policy Focus Amid Rising Government Bond Yields and Debt Concerns

India's fiscal policy is shifting focus from targeting fiscal deficit to anchoring debt-to-GDP ratio, aiming to reduce central government debt to 50% by 2030-31, as highlighted by economist Prachi Mishra. Meanwhile, rising long-term government bond yields and state debt levels signal early fiscal stress, despite liquidity infusion and rate cuts by the Reserve Bank of India. Market reactions reflect concerns over sovereign debt sustainability and borrowing costs amid evolving economic conditions.