India Avoids Fresh Borrowing Despite Iran War Stress | Divestment Boost Supports Finances

India may not need additional borrowing this fiscal year despite rising pressures from the Iran war, according to sources. Government officials have indicated that the Union Budget had already accounted for global uncertainties, helping maintain fiscal stability. A strong surge in divestment proceeds, which have crossed ₹18,500 crore and reached nearly a fourth of the annual target, has further strengthened the government's position. However, officials remain cautious about challenges arising from fuel, gold, and fertilizer prices, with fertilizer subsidies emerging as a major concern. The Finance Ministry is also closely monitoring the impact of global commodity prices on the budget. Karishma Asoodani explains the government's fiscal outlook and the key risks ahead.