{
  "id": 11975796,
  "title": "Capital limited but confidence in rules of trade, fiscal path of large economies: DEA secretary",
  "url": "https://urgent.news/2026/10/04/capital-limited-but-confidence-in-rules-of-trade-fiscal-path-of-large",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-04T17:26:11.000Z",
  "source": {
    "name": "The Economic Times - Economy",
    "slug": "the-economic-times-economy",
    "url": "https://economictimes.indiatimes.com/news/economy/foreign-trade/capital-limited-but-confidence-in-rules-of-trade-fiscal-path-of-large-economies-dea-secretary/articleshow/134678603.cms"
  },
  "original_language": "en",
  "account": "New Delhi: Economic affairs secretary Anuradha Thakur addressed the Kautilya Economic Conclave, emphasizing that when trade is organized around security and geostrategic concerns, surpluses and deficits become sources of friction and the cost of capital rises. She expressed optimism that the rules of the game remain in place and that countries acknowledge the longevity of partnerships. Thakur also highlighted that investment, once again, is driving growth despite a challenging global environment where capital remains constrained.\n\nThe secretary noted that the sharp increase in global bond yields presents a challenge for emerging markets, which are no longer solely influenced by monetary policy or fiscal deficits. Instead, these markets must also contend with Artificial Intelligence (AI) considerations. Government bonds now constitute over 80% of global GDP, making sovereign bond markets the largest pool of investments and debt and the benchmark for the price of capital across the financial system.\n\nThakur pointed out that governments are borrowing heavily while investors demand greater compensation for inflation, fiscal uncertainty, and duration risk, leading to an escalation in term premiums and long-term yields. For emerging markets, this situation poses a significant challenge as global bond markets determine the opportunity cost of capital and are increasingly shaped by global imbalances.\n\nAnother emerging aspect of the global capital landscape, Thakur emphasized, is the AI investment cycle. This cycle extends beyond software and computing, requiring data centers, semiconductors, reliable electricity, and transmission capacity. Investments in these areas are driving substantial demand for capital and are increasingly financed through debt. Consequently, global bond yields cannot be comprehended solely in terms of monetary policy or fiscal deficits; the scale of the AI buildout is now integral to this narrative.\n\nThakur stressed the importance of a consistent and prudent fiscal path, citing the durability of India's international economic partnerships. She highlighted the signing of several free trade agreements in recent years as evidence of these enduring relationships.",
  "summary": "Economic Affairs Secretary Anuradha Thakur said trade shaped by security and geopolitical considerations could deepen global imbalances, raise capital costs and create friction. She said private investment was showing signs of revival despite tight global financial conditions, while the AI investment cycle was adding to demand for capital and debt.",
  "key_points": [
    "Economic affairs secretary Anuradha Thakur addresses Kautilya Economic Conclave",
    "Capital constrained despite confidence in trade rules and fiscal path",
    "AI investment cycle driving demand for capital"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}