New Delhi, As India prepares to present the Union Budget 2026‑27 on February 1, investors are paying close attention to key fiscal indicators such as debt metrics, fiscal deficit outcomes, and government borrowing plans ahead of the announcement. These elements are expected to shape market sentiment, particularly in bond markets and debt instruments.According to a note from DBS Bank, net borrowings for FY27 are likely to rise to around ₹12 lakh crore, up from ₹11.4 lakh crore in the current fiscal, accounting for roughly 73 % of the budgeted deficit. With scheduled redemptions of about ₹4.5 lakh crore factored in, gross borrowings could reach a fresh high of ₹16.5 lakh crore — a figure that will be crucial for debt markets and yield expectations.
The Economic Survey 2025‑26 projects growth of 6.8‑7.2 % in FY27 and highlights global uncertainties as key risk factors, emphasizing the need to strengthen domestic fiscal fundamentals.
Markets will also watch for any use of switch operations to manage maturity pressure and potential effects on longer‑term bond yields as the government balances fiscal prudence with growth support.