Rising global capital costs threaten emerging economies, India official warns

India's economic affairs secretary Anuradha Thakur said high government borrowing, rising risk premiums and massive AI investments are driving up capital costs worldwide, posing a major challenge for emerging markets. She noted government bonds now exceed 80% of global GDP and highlighted India's record $97 billion FDI inflows and fiscal deficit cut to a budgeted 4.3% of GDP.