The yield on India’s 10-year G-Sec rose above 6.5% on Monday, hitting a three-week high, fueled by optimism over the government’s planned reform push. The winter parliament session starting December 1 is set to take up a wide-ranging package of bills covering insurance, atomic energy, and other key sectors, aimed at attracting investment and accelerating growth. Prime Minister Narendra Modi aims to transform India into a “developed country” by 2047, a target that calls for growth near 8%. Attention now will focus on upcoming Q3 GDP data this week, which is projected to expand 7.3%. However, recent indicators suggest steep US tariffs are starting to weigh on the economy, as October’s record trade deficit combines with slower November activity, with manufacturing at its weakest since May and services expansion moderating. Stalled US-India trade talks have further dampened sentiment, limiting policy support that could help offset the deficit and subdued portfolio inflows.
