India will raise by September more than half of its record $100 billion planned borrowing for the financial year that begins on April 1, a top adviser said on Tuesday, allowing more space for private borrowing as the economic growth picks up steam.
Montek Singh Ahluwalia, deputy chairman of the Planning Commission, said the federal government would have no problem in managing its borrowing plan for the 2010/11 fiscal year.
India can raise more funds in the first half depending on the economic circumstances, Ahluwalia told reporters, without mentioning the exact borrowing figure.
Asia's third largest economy is seen expanding over 8.5 percent in 2010/11, accelerating to 9 percent the year after.
Borrowing a higher proportion in the first half of the year would also be cheaper for the federal government, with interest rates on a hardening path along the year on rising inflationary pressures and greater demand for funds.
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