Indian states plan ₹3.61 lakh crore of market borrowing in October-December
Victoria Shinder2 min readIndia's state governments and union territories expect to borrow ₹3,60,820 crore from the market in the October-December quarter, according to the indicative calendar the Reserve Bank of India published on 1 October. That is about ₹3.61 trillion for the third quarter of the 2026-27 fiscal year.
The release also extends the Benchmark Issuance Strategy, under which participating states borrow on a pre-agreed pattern designed, in the RBI's words, to enhance transparency and give investors greater clarity. The RBI introduced it as a pilot from the first quarter of this fiscal year with nine states: Andhra Pradesh, Bihar, Chhattisgarh, Keralam, Madhya Pradesh, Maharashtra, Rajasthan, Telangana and Uttar Pradesh. Nine more states and Delhi joined from the second quarter. From the third quarter Assam, Goa, Haryana, Mizoram, Nagaland, Tripura and the union territory of Jammu and Kashmir are added, bringing the framework to 24 states and two union territories.
The calendar for the states under the strategy is in one annex and for the remaining states in another, both prepared in consultation with them. The RBI stresses that the figures are indicative. Actual amounts and participating states will be announced two or three days before each auction and depend on the states' requirements, approval from the central government under Article 293(3) of the Constitution and market conditions. The central bank says it will try to run the auctions in a non-disruptive way and spread borrowing evenly across the quarter, and reserves the right to change dates and amounts in consultation with the states.
Why it matters
State development loans are now a large share of India's government bond supply, and their timing has often been lumpy. A calendar that more than half the states follow on a fixed pattern makes that supply easier for investors, including foreign index buyers, to plan around.