India to Borrow and Spend More in 2010-2011

[sab]

india & indians are poor because losers like Swamy always fool india & indian.

China built and sold 13 million cars in 2009, almost all went to the domestic market, tell me which country's manufacturing sector is more domestic driven?

Who else would by your car...

We are progressing brother....even genious like Riaz Haq is spending time analysing our budget....though yet to read his post...but happy knowing he is writing on it...

 

[faithfulguy]

When talk about India economy, why mention China? I do see a lot of both Indian and Chinese members brought up the other country when there is news about their own country. This are just hot heads in here talking. But Indian media and government talk like Indian members in here. Why?

 

[desiman]

Gross borrowing for the new fiscal year will total 4.57 trillion rupees ($99 billion), below a Reuters poll forecast for 4.61 trillion but above a record 4.51 trillion rupees expected in the current year ending in March, Mukherjee said.

"With the fiscal deficit expected to be still high over the next fiscal year, it is clear that the onus will be on the RBI to hike rates in coming months in order to move policy settings closer to neutral and to deal with emerging inflation pressures," said Brian Jackson, strategist at Royal Bank of Canada.

Budget raises borrowing to new record; bonds hit | Business News | Reuters

Your still wrong Mr.Haq, i hope you know how the whole RBI and borrowing system works. Its not the same as me borrowing money from you lol the titile of your thread still does not outline the realy story.

 

[shchinese]

When talk about India economy, why mention China? I do see a lot of both Indian and Chinese members brought up the other country when there is news about their own country. This are just hot heads in here talking. But Indian media and government talk like Indian members in here. Why?

read my post. OP's article suggested by OP mentioned China and started all this.

 

[shchinese]

Who else would by your car...

good question.

when you import weapons from russia, we export our cars there.

Chinese Cars - Chery in Russia

have a look.

 

[Isaq Khan]

India's 2010-2011 budget of 11.08 trillion rupees ($240 billion) represents an increase of 8.6% over 2009-2010. The government plans to borrow $100 billion to finance the deficit during the fiscal year.

Haq's Musings: FAQs on India's Massive 34% Defense Budget Hike

How many thread u will have on same topic.

U should be more concerned for pakistan which is borrowing and buying cheap chinese stuff than India.

Now u r out of arguments as Education got 30% hike, Health got 25% hike and defense a mere 3.88 hike.

Respect this defense forum and join some economic forum for this type of trash talk.

 

[TechLahore]

India's 2010-2011 budget of 11.08 trillion rupees ($240 billion) represents an increase of 8.6% over 2009-2010. The government plans to borrow $100 billion to finance the deficit during the fiscal year.

Wow! $100B worth of borrowing... On a $1.2T GDP, it's an 8.3% deficit. Pakistan's fiscal deficit for '09 was 4.3% and current account was 5.3%. I guess one can act like a spend-thrift and increase defence budgets if macro-economic balances are no longer a concern!!

 

[NSG_BlackCats]

Wow! $100B worth of borrowing... On a $1.2T GDP, it's an 8.3% deficit. Pakistan's fiscal deficit for '09 was 4.3% and current account was 5.3%. I guess one can act like a spend-thrift and increase defence budgets if macro-economic balances are no longer a concern!!

Great post by a think tank of PDF.

I know Pakistan's economy is doing great these days. With a fiscal deficit of 4.3% and current account deficit of 5.3% (as per you), could you please let me know what is Pakistan's GDP growth in 2009? Why add from IMF and other countries have to bail out pakistan's economy?

But India is doing ok with 8.3% deficit (as per you). We have a forex reserve which is near about 20 times that of pakistan. In the times of recession our growth is ok. It is 7.2% for 2009-10.

regards

 

[Roby]

good question.

when you import weapons from russia, we export our cars there.

Chinese Cars - Chery in Russia

have a look.

Talking about Chery car? Chery car crash test conducted by Russian lab.

Have a look.

details here.

Chinese car crash test

 

[karan.1970]

I think Swamy is right. Though China's internal consumption is rapidly rising, the Chinese GDP is still more exports driven than India's or Pakistan's.

Pakistan, like India, also is relatively light on exports as a part of the overall economy. In Pakistan, exports account for less than 15% of gross domestic product, compared with about 25% in India and 40% in China.

Haq's Musings: Pakistan's Choice: Talibanization Versus Globalization

Riaz

Do you have a source for the exports figures. Asking because my understanding was that India's exports for 2009 are at approx 156 billion which puts it at about 12% of GDP (1.25 trillion)

 

[RiazHaq]

Riaz

Do you have a source for the exports figures. Asking because my understanding was that India's exports for 2009 are at approx 156 billion which puts it at about 12% of GDP (1.25 trillion)

Here's a slightly dated info:

Although better known for its IT outsourcing services, India has become a major Asian exporter in recent years. Its exports increased from 16.9 percent of India's GDP in 2002-03 to 24.8 percent in 2007-08. Export industries employ 150 million workers, the second largest sector after farming. India's economic growth for the fiscal year ending in March is officially projected to be 7.1 percent—down from 9.1 percent last year.

Asia?s export economies in free fall

 

[karan.1970]

Here's a slightly dated info:

Although better known for its IT outsourcing services, India has become a major Asian exporter in recent years. Its exports increased from 16.9 percent of India's GDP in 2002-03 to 24.8 percent in 2007-08. Export industries employ 150 million workers, the second largest sector after farming. India's economic growth for the fiscal year ending in March is officially projected to be 7.1 percent—down from 9.1 percent last year.

Asia?s export economies in free fall

https://www.cia.gov/library/publications/the-world-factbook/geos/in.html

So the figure of 24% is of 2007. 2009 is significantly lower at 12.5% or so . Probably due to the global recession. What this shows is that despite such a fall in global business, India still grew by over 6.5 % by replacing international demand by domestic demand...

 

[12345]

india & indians are poor because losers like Swamy always fool india & indian.

China built and sold 13 million cars in 2009, almost all went to the domestic market, tell me which country's manufacturing sector is more domestic driven?

Look whom we have here.
Having blinded his eyes to notice the title of thread,somepeople only prefer to troll.

Chinese domestic consumption has nothing to do with India.

But since you brought up the troll here,

India ranks top of China in % of domestic consumption.
Why dont our fellow chinese spend some time on educating themself instead of trolling all threads?

 

[karan.1970]

Wow! $100B worth of borrowing... On a $1.2T GDP, it's an 8.3% deficit. Pakistan's fiscal deficit for '09 was 4.3% and current account was 5.3%. I guess one can act like a spend-thrift and increase defence budgets if macro-economic balances are no longer a concern!!

What really matters is how much of external debt a country carries and its capacity to service that debt

Now India's external debt is 232 billion which is about 18.5 % of its GDP. Also the total debt is easily covered by the available reserves which stand at 282 billion which gives a debt to reserve ratio of 0.8. In Financial term this is an extremely healthy situation

Now since you brought up the healthy state of Pakistan's finances, heres a comparison on same lines as above

Now Pak's external debt is 52 billion which is about 31 % of its GDP. Also the total external debt is in fax excess of the available reserves which stand at 16 billion which gives a debt to reserve ratio of 3.3. I will let you decide what that means in financial health terms.

https://www.cia.gov/library/publications/the-world-factbook/geos/in.html

https://www.cia.gov/library/publications/the-world-factbook/geos/pk.html

 

[RiazHaq]

https://www.cia.gov/library/publications/the-world-factbook/geos/in.html

So the figure of 24% is of 2007. 2009 is significantly lower at 12.5% or so . Probably due to the global recession. What this shows is that despite such a fall in global business, India still grew by over 6.5 % by replacing international demand by domestic demand...

I take CIA data with a grain of salt. It has factual errors, like India's public debt to gdp ratio of 60%, which is in fact much higher. This year's budget, for example, says India aims to bring it down to 80% of GDP in the next few years.