Recently, the ministry of finance has indicated that it is looking at more ways to borrow from foreign investors. While the timing of such a move appears to be another effort on the government's part to fund its large fiscal deficit, we see several positives in this proposal nonetheless. Despite the economic and political noise at the forefront, this is another attempt by the government to engage foreign investors, after the liberalisation of NRE deposit rates, regulations on equity investments and FDI in single-brand retail.