Global capital is no longer cheap as government bond yields hit multi-decade highs across advanced and emerging economies. Investors demand higher returns due to three key factors: persistent fiscal deficits in developed nations driven by aging populations, welfare, and military spending; commodity inflation prompting central bank interest rate hikes; and the massive debt-funded global race for AI infrastructure by tech giants. These forces compel governments to compete for capital. For India, this means accepting expensive global capital and prioritizing domestic fiscal discipline to avoid crowding out private sector borrowings. Policymakers must adapt to this new financial reality.