New Delhi, Oct. 26 -- Budget deliberations have opened with competing claims on public money and a hostile external account. Crude oil has traded above $110 a barrel. Foreign investors are withdrawing record sums from Indian equities. The rupee hit a record low against the dollar. Retail inflation is squeezing household budgets, while dearer imports are compressing business margins. The Reserve Bank of India has responded with its first rate increase in nearly four years.

US ten year Treasuries yield around 5%, while the Federal Reserve has turned towards tightening and Japanese government bond yields have climbed close to 3%. The cheapest money in the world for three decades is being called in. Global investment in artificial intelligen...