Conversely, APP empowers the forward guidance on policy rates, as the credibility of indications about the setting of the policy rates in the future are almost certainly enhanced by provision of asset purchases today. These purchases are a concrete demonstration of a desire to provide additional stimulus. Clearly, forward guidance on policy rates and APP are connected by a solid two-way interaction.
The annual gross market borrowing of the Government of India and the State Governments increased from ₹ 122.83 billion in 1991–92 to ₹ 7602 billion in 2013–14. The amount of outstanding Government of India securities increased from ₹ 780.23 billion in 1991–92 to ₹ 35,141 billion in 2013–14.