The demand for Indian debentures/stock was high for reasons unconnected to the machinations of the IO. In the early part of the period, there was little competition for investors' funds from foreign governments or domestic industry, and there was a patriotic element to the purchase of Indian securities. Much of the railway equipment bought with the proceeds of issues was sourced in the UK and the completed infrastructure, built by British engineers, ultimately increased UK exports and reduced the cost of imports. More importantly, investors believed Indian loans to be secure and that the Indian government would default neither on the payment of dividends nor on the repayment of capital. Until the inter-war period, they thus had a good appetite for the securities, which allowed the IO to offer relatively low yields. Their confidence was also based on the state of the country's finances, its membership of the British Empire, and a mistaken (though essentially accurate) belief that the loans were guaranteed by the UK government. Indian finances were regarded as extremely sound – government debt was exceeded by the value of public sector assets, the revenue of which exceeded interest charges over time – and this situation was expected to continue as long as the country remained part of an Empire on which the sun would never set.