New Delhi, Sept. 28 -- Last week, yields on 10-year US government bonds crossed the widely watched 5% mark, meaning investors are demanding higher interest on loans given to the US government for a 10-year period.

Historically, US government bonds have been considered a safe asset for investment and have therefore carried low yields. However, the US government's debt burden is now projected at 101% of its GDP, and is expected to rise steadily further over the next decade. Persistent inflation risks, strong economic growth and competition from companies for capital are also pushing yields higher. This will likely make investors demand higher interest rates from countries across the globe, including India.

The gap between the yield on Ind...