{"id":43837,"date":"2026-03-31T10:43:06","date_gmt":"2026-03-31T10:43:06","guid":{"rendered":"https:\/\/www.vtmarketsglobal.com\/en\/uncategorized\/43837\/"},"modified":"2026-03-31T10:43:06","modified_gmt":"2026-03-31T10:43:06","slug":"in-february-indias-federal-fiscal-deficit-rose-to-inr-12526-49b-from-inr-9814-07b","status":"publish","type":"post","link":"https:\/\/www.vtmarketsglobal.com\/en\/live-updates\/43837\/","title":{"rendered":"In February, India\u2019s federal fiscal deficit rose to INR 12,526.49B from INR 9,814.07B"},"content":{"rendered":"India\u2019s federal fiscal deficit rose in February. It increased from 9,814.07 billion INR to 12,526.49 billion INR.\n\nThis shows a higher gap between government spending and revenue compared with the previous figure. The change is based on the February reading.\n\n<h3>Fiscal Deficit And Borrowing Outlook<\/h3>\nWe see the February fiscal deficit has widened considerably, signaling a sharp increase in government borrowing needs ahead. This brings the deficit to 86.5% of the full-year target, a notable jump from the 75% we saw at this time last year. This greater supply of government bonds is expected to put upward pressure on yields in the coming weeks.\n\nThis data puts the Indian Rupee under a cloud, as higher deficits can erode foreign investor confidence. We&#8217;ve recently seen the USD\/INR pair hold steady around 84.20, but this news could be the catalyst to test higher levels. A strategy of buying USD\/INR futures or call options could offer a way to position for potential Rupee depreciation.\n\nFor equity markets, the prospect of higher interest rates presents a headwind for corporate earnings and valuations. With the Nifty 50 index recently touching highs above 24,000, it is now more vulnerable to a sentiment shift. We believe purchasing put options on the Nifty could serve as an effective hedge against a potential market correction.\n\nLooking back from our 2025 perspective, we recall a similar spike in borrowing concerns during late 2023 which led to a sharp bond market sell-off. All eyes will now be on the Reserve Bank of India&#8217;s upcoming policy meeting in the second week of April. Any hawkish commentary from the RBI could accelerate these market movements.\n\n<h3>Key Events To Watch Next<\/h3>\n\n<b><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>\u00a0and\u00a0<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>\u00a0now. <\/b>\n<p>\r\n\r\n<p><strong>Start trading now &#8211; Click <a href=\"https:\/\/www.vtmarketsglobal.com\/en\/trade-now\/\">here<\/a> to create your real VT Markets account <\/strong> <\/p>\r\n<!-- \/wp:post-content -->","protected":false},"excerpt":{"rendered":"<p>India\u2019s federal fiscal deficit widened in February, rising to 12,526.49 billion INR from 9,814.07 billion INR.<\/p>\n","protected":false},"author":38,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46],"tags":[],"class_list":["post-43837","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":[],"aioseo_notices":[],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"josephine","author_link":"https:\/\/www.vtmarketsglobal.com\/en\/author\/josephine\/"},"_links":{"self":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/43837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/users\/38"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/comments?post=43837"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/posts\/43837\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/media?parent=43837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/categories?post=43837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarketsglobal.com\/en\/wp-json\/wp\/v2\/tags?post=43837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}