The 10-year bond yield fell 9 basis points to close at 6.748% compared with Wednesday's close of 6.833%. Bond prices and yields move in opposite direction.
"We will be sticking to the fiscal path which has been laid out; if private investment has to increase, it cannot be allowed to be crowded out by public investment", said chief economic adviser Krishnamurthy Subramanian in the Survey table in the Parliament today.
The Economic Survey has projected the Indian economy to grow at 7% in FY20, up from 6.8% in the previous fiscal. Analysts are optimistic that the government will take tough decisions and lay down steps to provide a fillip to economic activity in the country.
The Indian rupee also gained, partly helped by a court ruling allowing the sale of Essar Steel to ArcelorMittal. The sale is expected to lead to about $6 billion of inflows into forex markets.
The rupee ended at 68.51 a dollar, a level last seen on 3 April, up 0.53% from its previous close of 68.90. The Indian currency had opened at 68.82 a dollar and touched a high of 68.49.
The benchmark equity index Sensex ended 0.17% higher at 39,908.06 points. Year to date, the index has risen 10.03%.
So far this year, the rupee has risen 2% against the greenback. During the period, foreign investors bought $10.99 billion in Indian equities and $1.69 billion in the debt market.
Other Asian currencies traded higher as dollar weakened after a soft private US employment report raised concern that Friday’s jobs data could come in weaker than expected and boost the case for lower interest rates.
(Bloomberg contributed this story)