India: $222 billion debt maturing this fiscal to put pressure on forex kitty

[Tauren Paladin]

India economic collapse in the future.

 

[Areesh]

Not a big deal, for many reasons:

1) Out of this 222 billion, 120 billion is internal and only 102 billion external. In between July 2013-March 2014 we paid 174 billion including 96 billion external but still our forex reserves increased to 307 billion in April 2014 from 280 billion in July 2013.

2) As a percentage of forex reserves short term external debt was 33% of reserves in 2013 but now it is only 24%.

3)The situation in India's capital market (incl external capitals) in 2018 though not perfect is still far better than the situation in 2013. NRI deposits also much higher than 2013.

4) Lastly about 75-80% of short term debt is held by private corporations not government. More importantly a good proportion of short term external debt is held in rupees.

Multiple ID rat is back @waz @WAJsal @The Eagle

 

[Pakistani Aircraft]

Still you guys are the one with the biggest begging bowl , 12 billion bailout

How much is India begging a week? How do you think India has ended up with $529 billion in external debt?

 

[Pakistani Aircraft]

That's less than 20% of India's GDP. The corresponding figure is 32% for Pakistan. Our reserves cover more than 75% of our external debt, yours about 10%. So, again, when are you approaching the IMF?

Trying paying off at least 10% of India's $529 billion external debt. Just try.

At the moment India is borrowing so much just to pay off some of the already borrowed.

 

[Hassan Guy]

 

[AyanRay]

How much is India begging a week? How do you think India has ended up with $529 billion in external debt?

Read the below, I know it's way too much for you to understand given your education levels, but still give it a try.

Understanding Indian Economy 101 Lessons once again, I hope this helps

See the total debt of India and focus on areas marked in red and blue.

View attachment 490774

Do you see that external debt percentage of GDP has decreased over the years.
Do you see that majority of Debts around 78% is non Government Debt, that means those are business debts, now either business houses will pay out this debts from the provisions that they have created or they will roll over the loans, in both the cases funds remain stable. In case the company is bankcrupt and doesnt pay, in that case too, thats business to business, doesnt affect at government level.


View attachment 490776

Out of 222bn that is to payed out this year, 5bn is Sovereign Debt.
Approx 90bn are NRI Deposits, majority of them will again get reinvested, so that just account procedure.
And for other short term debts, as explained earlier how appropriations are done.


Now see the given below details marked in blue column
View attachment 490775

We are already paying around 20% of Total debt as short term debt maturity every year from last 10yrs or so, whats new or panicking this time?

Stop fussing around on numbers if you dont know whats behind the numbers, economics and understand economy movements need co relations.

Data source: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=44350