Economy in the doldrums as India's external debt crosses half trillion mark, Debt = $529 billion

[hazzam]

It's 20.5% of the GDP, down from 23.9% in 2015.

better than 2015 , good .

 

[xyxmt]

now listen to reasons which are all in India's favor, Suddenly debt which is a curse for every other country becomes a blessing for India

 

[hazzam]

now listen to reasons which are all in India's favor, Suddenly debt which is a curse for every other country becomes a blessing for India

that is true .
your sarcasm is well received and acknowledged .

 

[AyanRay]

now listen to reasons which are all in India's favor, Suddenly debt which is a curse for every other country becomes a blessing for India

Point 1- Most of India's external debt is due to FIIs buying bonds of Private Companies, so its a good thing.
Point 2- Most of Pakistan's external debt is used to pay off interest on previous debts

Hence, yes. Indias debt is good, while Pakistan is in a crisis.

 

[TopCat]

75% of india's reserve is short term debt which matures in 1 year time.

 

[LASER1]

75% of india's reserve is short term debt which matures in 1 year time.

And it's non-governmental debt. Did you mean debt, what's with the reserve?

 

[El Sidd]

So how is India going to deal with the coming recession?

 

[ADITYA MAYUKH]

So how is India going to deal with the coming recession?

The world is just coming out of 2008 financial crisis ,please don't hope for recession in near future but time changes and if it comes to dealing with recession we have to brace for it with our 1.3 billion consumer base that's how we survived 2008 recession with minimal damage. And with a growth forecast of 7.5 % we don't see our economy being stagnant or recedding.
And in case of our debt most of them is privately owned and is not a liability to indian government and various of these loans are on very less intrest and most of them are invested in development projects or as a performing asset which pay for themselves in long run and most of the loans are long term loans ,atleast most that is taken by our government.

 

[El Sidd]

The world is just coming out of 2008 financial crisis ,please don't hope for recession in near future but time changes and if it comes to dealing with recession we have to brace for it with our 1.3 billion consumer base that's how we survived 2008 recession with minimal damage. And with a growth forecast of 7.5 % we don't see our economy being stagnant or recedding.
And in case of our debt most of them is privately owned and is not a liability to indian government and various of these loans are on very less intrest and most of them are invested in development projects or as a performing asset which pay for themselves in long run and most of the loans are long term loans ,atleast most that is taken by our government.

I am just informing beforehand man..What can i say.

Be prepared i guess.

 

[ADITYA MAYUKH]

I am just informing beforehand man..What can i say.

Be prepared i guess.

Thats a great thing to be prepared for any unfortunate turn of event but when we talk about economy the steps taken for growt of economy is the best way of preparation for any recession . Isn't it?

 

[El Sidd]

Thats a great thing to be prepared for any unfortunate turn of event but when we talk about economy the steps taken for growt of economy is the best way of preparation for any recession . Isn't it?

Not really.

All modern economies are built on a system which has an obvious cyclic achilles heel.

There is No fool proof system.

 

[Shamsher1990]

So how is India going to deal with the coming recession?

In the same way a farmer does. He eats what he grows. There will still be food grown in the country, there will still be water flowing in the rivers. So nothing to worry about. And in India, where majority is still involved in agriculture, there is even less to worry. People will still be eating food and wearing clothes. The ones who have to worry are those who make iPhones, iPads etc. They will be out of job because people will buy less of them. For majority of India, it will be life as usual, even a bit easier. Because luxuries will get cheaper.

Remember 2008? Who were crying the loudest? The newyorkers, the house flippers and house owners of the west. India? Most people in the villages were not even aware of anything called recession. The fields were still green and water was still blue. It is still the same.

 

[El Sidd]

In the same way a farmer does. He eats what he grows. There will still be food grown in the country, there will still be water flowing in the rivers. So nothing to worry about. And in India, where majority is still involved in agriculture, there is even less to worry. People will still be eating food and wearing clothes. The ones who have to worry are those who make iPhones, iPads etc. They will be out of job because people will buy less of them. For majority of India, it will be life as usual, even a bit easier. Because luxuries will get cheaper.

Cool.

You are 1.3 billion right?

 

[Shamsher1990]

You are 1.3 billion right?

Not me, but India is. And yet, most of them are involved in farming, one way or the other.

 

[ADITYA MAYUKH]

Not really.

All modern economies are built on a system which has an obvious cyclic achilles heel.

There is No fool proof system.

Nobody is saying that there is a fullproof plan and thats why it is called preparedness and not a fullproof plan. You must prepare for what to come since we don't know the future we must do what we feel will bring growth to our economy.