India’s central bank announced it will pay a dividend of 2.1 tln rupees (USD 25.2 bln) to the government, significantly above the budgeted 1.02 tln rupees. This substantial dividend is intended to support the government in managing its fiscal deficit target of 5.1% of GDP for FY24/25. The additional funds are also poised to bolster the fiscal capacity of the incoming administration post-election, facilitating increased economic stimulus measures. Following the announcement, India’s sovereign bonds rallied, with the yield on the 10-year note decreasing by two bps to 7.06%.