US default probability low, but may impact Indian markets: Analysts

But if it does happen, it will be negative for all emerging markets as the US, simply put, would have run out of money

Arup Roychoudhury New Delhi

Listen to This Article

This week, Republican and Democrat lawmakers in the United States are likely to resume discussions with President Joe Biden to raise the country’s sovereign debt ceiling limit from the current $31.5 trillion.
June 1 is being seen as the date when the US will technically breach that ceiling, triggering a debt default by the world’s largest economy, unless the Biden administration comes up with a plan on budget priorities and on raising the debt limit.
While the probability of a default is still low, it cannot be discounted completely, and will impact all emerging economies, including debt, equity, and foreign exchange markets in India.

Also Read

New REIT, InvIT regime spells higher taxation for sovereign funds

Sovereign Gold Bond 2022-23: Series III subscription to open on Dec 19

Projects worth Rs 19,000 cr to get grants under Sovereign Green Fund

Debt mutual funds log Rs 40K-crore inflow before tax tweak cut-off

Debt fund investors' aim should be capital protection: Sandeep Yadav

India's exports to Asia, Africa shrink in FY23, drag down overall growth

Many states reduce excise duty on mild beer, make retailing easier

Carbon tariff may hurt European nations more than India: Officials

RBI, green finance and the blue planet: How are banks placed in all this?

Good earning season bring FPIs to India, Rs 23,152 cr investment in May

First Published: May 14 2023 | 8:17 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to