India is sitting on Half Trillion $$ in Foreign exchange Reserves Tonight

[vi-va]

I am not comparing but showing their aukaat given this is PDF.


But you have to agree that our government is little less indebted.

little less? Compare with whom? Those private debt interest rate is much higher than sovereign debt, dude.

 

[MayaBazar]

It's the same. Debt is debt, no matter it's sovereign debt, or private debt. When repayment is needed, it will be paid in USD.

What if those private entities file for Bankruptcy ? Is the Government of India obliged to pay those Foreign banks the loaned money on behalf of those private entities?

 

[vi-va]

What if those private entities file for Bankruptcy ? Is the Government of India obliged to pay those Foreign banks the loaned money on behalf of those private entities?

If they do file bankruptcy, India has 2 options:

1. Let them die. Unemployment. Foreign loaner get a share of private companies' assets.
2. Let them breath, save their a$$ with India foreign exchange reserve. Save employment.

In option 1, those assets may be sold and foreign loaner can still get part of their money back in USD, which reduce India foreign exchange reserve. and India government has to clean the mess of unemployment.

In option 2, it's the same as sovereign debt, except with much higher interest rate. And it's unfair to other companies if government decide not to save. It's dilemma.

As I said, debt is debt, there is no easy way to get rid of debt. No matter it's private debt or sovereign debt.

 

[Protest_again]

little less? Compare with whom? Those private debt interest rate is much higher than sovereign debt, dude.

Do you not understand english? I said my government is little less indebted which is true as sovereign guaranteed public debt is just over $100 billion. Private entities securing external loan in most cases the interest rate is actually dependent on their financial health. For example Reliance with its credit rating of BBB+ (S&P) avails cheaper loans than even GOI.

If they do file bankruptcy, India has 2 options:

1. Let them die. Unemployment. Foreign loaner get a share of private companies' assets.
2. Let them breath, save their a$$ with India foreign exchange reserve. Save employment.

In option 1, those assets may be sold and foreign loaner can still get part of their money back in USD, which reduce India foreign exchange reserve. and India government has to clean the mess of unemployment.

In option 2, it's the same as sovereign debt, except with much higher interest rate. And it's unfair to other companies if government decide not to save. It's dilemma.

As I said, debt is debt, there is no easy way to get rid of debt. No matter it's private debt or sovereign debt.

A private entity would stop paying back loan only when it is not in pink of health as such unemployment is eventuality. What exactly is GOI is getting in return for saving such companies. India is market economy as such people will find alternate jobs in other competing companies. It is not like all private companies would go under all at the same time. It is the risk that is attributed to company and its lenders and not GOI. If lender has to sell property to recover its loan (if not all) then so be it but GOI is not liable in any way.

 

[Han Patriot]

China's external debt is over 2 trillion. Keep up with the actual figures.

Ok but it'd still 1 trillion positive mate. Lol. What about superstronk India?

 

[Protest_again]

Ok but it'd still 1 trillion positive mate. Lol. What about superstronk India?

Lol. it was once 4 trillion remember. It took only 2 years to come back to $3 trillion. It could only take a year for another trillion to disappear(given China virus). So please be humble otherwise you might have to eat your words in near future.

Also what was the point of your comment? That China is stronk than India, then of course we are not idiots to deny that. Lol.

 

[ali_raza]

https://swarajyamag.com/insta/india...erves-rise-by-over-3-billion-to-49004-billion

Guys so much negativity around with Ladakh and Covid 19 I just wanted to confirm Indian foreign exchange reserves are hovering at $500 billion

That is ABSOLUTELY huge for a nation depicted in bad publicity

Do not under estimate how powerful india is becoming global

The 5th largest GDP on the plant at $3trillion and a huge bank balance

BRING this back to defense if india has to fight CHINA it has the means and the money to do it

I actually think india is punching way below its real military and industrial strength.

Yes there is poverty
YES e have infrastructure issues
Yes there is corruption

BUT by god we are in such a STRONG position to GET this right

Usa and European banks all predict Indian GDP to be $5 trillion by 2025 I thnk its optimistic but 2027 I think its pretty much guranteed evenm a short war wont stop it

As for the forex in 2015 its was barely $300 billion today its $500 billion or just under
So by 2025 I think $700 billion is realistic provided rupee remains in the 70s to dollar

Its good be proud and confident

kudos to kids economists
these r hot money loans from fed
or major part of it.
with americans moving away u will see where it goes

 

[vi-va]

Do you not understand english? I said my government is little less indebted which is true as sovereign guaranteed public debt is just over $100 billion. Private entities securing external loan in most cases the interest rate is actually dependent on their financial health. For example Reliance with its credit rating of BBB+ (S&P) avails cheaper loans than even GOI.



A private entity would stop paying back loan only when it is not in pink of health as such unemployment is eventuality. What exactly is GOI is getting in return for saving such companies. India is market economy as such people will find alternate jobs in other competing companies. It is not like all private companies would go under all at the same time. It is the risk that is attributed to company and its lenders and not GOI. If lender has to sell property to recover its loan (if not all) then so be it but GOI is not liable in any way.

China government has ZERO external debt, so we are worry free? How absurd.

 

[Protest_again]

China government has ZERO external debt, so we are worry free? How absurd.

Seriously? Zero external debt? I would like to see that break down. Point me to that source.

Never mind. I knew you were lying.

"In terms of institutions and sectors, the outstanding debt of government totaled RMB 1.7289 trillion (USD 244.5 billion), accounting for 12%; the outstanding debt of the central bank totaled RMB 257.8 billion (USD 36.5 billion), accounting for 2%; the outstanding debt of banks totaled RMB 6.6113 trillion (USD 934.7 billion), taking up 46%".

So it is close to 60% then, given all your banks are state owned.

https://www.safe.gov.cn/en/2019/1227/1613.html

This is India's by the way.

 

[vi-va]

Seriously? Zero external debt? I would like to see that break down. Point me to that source.

Never mind. I knew you were lying.

"In terms of institutions and sectors, the outstanding debt of government totaled RMB 1.7289 trillion (USD 244.5 billion), accounting for 12%; the outstanding debt of the central bank totaled RMB 257.8 billion (USD 36.5 billion), accounting for 2%; the outstanding debt of banks totaled RMB 6.6113 trillion (USD 934.7 billion), taking up 46%".

So it is close to 60% then given all your banks are state owned.

You don't need break down. Common sense, China is loaner, dude. We don't need to borrow, others borrow from China, such as US borrow 1 trillions USD from China.

 

[Protest_again]

You don't need break down. Common sense, China is loaner, dude. We don't need to borrow, others borrow from China, such as US borrow 1 trillions USD from China.

So you don't understand English now.

In terms of institutions and sectors, the outstanding external debt of government totaled RMB 1.7289 trillion (USD 244.5 billion).

https://www.safe.gov.cn/en/2019/1227/1613.html

 

[vi-va]

So you don't understand English now.

In terms of institutions and sectors, the outstanding external debt of government totaled RMB 1.7289 trillion (USD 244.5 billion).

https://www.safe.gov.cn/en/2019/1227/1613.html

So what? Others such as USA still owe 1 trillion USD to China, not the otherwise.

 

[PAKISTANFOREVER]

it's actually $2200. Meanwhile it is $1450 for Pakistan. Lol


Don't go bursting their propaganda. India's external public debt is only 20% of its total external debt while the same is 80% in case of Pakistan. Lol.

That is factually incorrect. Pakistan's GDP per capita is $1482 and india's is $2010:

https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=BM

 

[Han Patriot]

Lol. it was once 4 trillion remember. It took only 2 years to come back to $3 trillion. It could only take a year for another trillion to disappear(given China virus). So please be humble otherwise you might have to eat your words in near future.

Also what was the point of your comment? That China is stronk than India, then of course we are not idiots to deny that. Lol.

It went up by 100bil$ in a few months. Alot of it is used to buy gold and increase imports to reduce surplus, we actually are trying to reduce it. INDIA IS BEGGING TO GET IT. LOL

If it was India, you guys would be begging IMF now. Lololol. Yes China is definitely stronger than India. You are one grade above junk

 

[The Maverick]

The thread is about the inherent strength of India
It's not nuclear weapons or fighter planes
India real power is it's strong GDP huge reserves and thriving middle class population of 300 million plus .

Taking ladakh and Kashmir is near impossible for this reason not because of arihant subs or rafales or one million man army
You just need understand this nonsense spouted here about sun Saharan poverty or corruption or red tape decision making is real but India is much much more.

It can handle Pakistan with ease that will never change we are simply far bigger country in every way that matters

As for China like I said they could not have picked or more powerful opponent than India other than USA.

So let's see were we end up and who retains their territory