New Delhi, Oct. 5 -- States are set to significantly increase their market borrowings in the October-December quarter, with gross issuance of state government securities (SGS) likely to rise 25.9% year-on-year to Rs.3.6 trillion, according to an ICRA report released on Monday.

States are ramping up market borrowings to refinance older debts that are coming due, as well as to meet welfare and revenue expenditure.

The development assumes significance as 26 states and Union territories (UTs) have now adopted the Reserve Bank of India's (RBI) Benchmark Issuance Strategy (BIS), accounting for 77% of the total planned borrowing in the quarter. The RBI's Benchmark Issuance Strategy was introduced on a pilot basis in Q1 FY27 and requires partic...