Why is India borrowing in Japanese Yen

India's newfound fascination with yen-denominated loans reveals a strategic shift in its approach to managing external debt. The discussion highlights how favorable interest rates make borrowing in Japanese yen appealing. Insights into the historical context of Japan’s economy shed light on potential risks, particularly related to currency fluctuations. This trend reflects India's broader strategy to diversify its sources of financing, indicating a significant move away from reliance on the US dollar.