LetsGetRowdy
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Indian economy to grow 3 percent in 2012-2013: BBC report
- Thread starter kawaraj
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DF-41 ICBM
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looks like india's dream of superpowerdom is falling, just like their gdp.
i love it.
absolutely f**king brilliant!
folks, india is done.
DF-41 ICBM
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indian economy is going to get worse and worse.
too much debt, twin deficits, overconsumption based on imported goods and collapsing currency will mean indian economy will be the next greece.
looks like india's dream of superpowerdom is falling, just like their gdp.
DID you also notice that one is of 1990-2010 average, and is from Wrold Bank. While the other one is from IMF and is for just 2011.
Majority of the deficit is due to the subsidies for oil, if we cut it. Then we will have ample money left over. The only reason government doesn't do it because then people will be out on the street.
India is a net exporter？that's the biggest joke I have heard today.
the deficit problem of india is two times worse than US and india don't have a mighty corrency like dollar that US have.
That's why rupee have fallen so hard and would keep fall.
That's why it doesn't hurt to do some research, go and check how much India import and how much subsidies is put on them. The major import is oil which is heavily subsidies. Even a 7% less subsidy on oil will greatly reduce the debt and solve the deficit problem. The government doesn't do it because it is already one leg in the grave, if it takes off the subsidy it will be in big trouble in loosing vote in the coming elections.
lol，indian don't count oil import as import？
karan.1970
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lol.. you dont understand english? He is talking about the issue of subsidies.. not oil import
lol.. you dont understand english? He is talking about the issue of subsidies.. not oil import
he talked about oil import as well
Yeah as an example almost everything is subsidized with oil accounting majority of it. If we cut the subsidies just by a little the problem can be solved, but the government will not do it because then there are chances of it loosing next election.
OrionHunter
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Not a hope in hell as long as we have the present crop of bl00dy imbeciles - from Mamta Bannerji to clowns like Lallu Yadav - ruling the roost, as well as a lame duck government headed by a petrified Manmohan Singh and controlled by an Italian who knows fig about governance.
I pity the country. It's being ripped apart by the so called 'coalition mantra'. Let's kick these buggers out if we want the country to regain its stature.
harpoon
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Come 2014 lets promise that whether Congress or BJP, we will elect them to Parliament with majority (or close to it) so that the coalition drama can be avoided and especially to keep dimwits like Mamata and Lalu out of power.
India’s total external public debt has risen to $326 billion while foreign exchange reserves have dropped to $293 billion, according to the RBI data reported by the Indian Express newspaper.
The Reserve Bank of India is concerned over the increasing shift from equity to debt to fill India's widening current account gap. The latest available data indicates that foreign debt inflows in January so far have amounted to $3.21 billion versus $1.7 billion through equity inflows.
Recent $1.1 billion bail-out of Reliance Communications by state-owned Chinese banks is the clearest indication yet that the situation is also becoming dire in India's private sector with its mounting foreign debt.
This is not the first instance of Chinese banks coming to the aid of an Indian company. Last November, Sasan Power, the project company for the Sasan ultra mega power plant and a subsidiary of RComm affiliate Reliance Power, completed a $2.2 billion refinancing, including a $1.114 billion 13-year tranche. Bank of China, CDB and Chexim took $1.06 billion of that tranche, for which Chinese export credit agency Sinosure provided insurance.
Reliance Com is not alone in facing cash crunch in their ability to service debt. More than two dozen Indian companies included in the BSE-500 index face redemptions on foreign currency convertible bonds worth a combined Rs330 billion ($6.5 billion) by March 2013, according to brokerage Edelweiss. These include RComm’s US$925m outstanding CB, which the loan will repay.
Unless other Indian borrowers can somehow find lenders, they will be facing deteriorating debt market conditions that have led to shrinking liquidity in the loan markets and a rise in pricing.
“Top-tier Indian firms will have to pay between 250 basis points (2.5%) and 300 basis points (3.0%) over LIBOR (London Inter-bank Borrowing Rate) to borrow five-year money offshore. Even at that kind of pricing, there isn’t a lot of liquidity available,” said a Hong Kong-based lender quoted by International Financing Review. Over $20 billion worth of Indian debt is set to mature in 2012 and, of that, about $6 billion each of convertible bonds and rupee loans are up for redemption, with the balance in offshore loans.
ndia continues to run huge twin deficits of current account and budget. It depends heavily on foreign inflows. United Nations data shows that India received less than $20 billion in FDI in the first six months of 2011, compared to more than $60 billion in China while Brazil and Russia took in $23 billion and $33 billion respectively. Stocks in all four countries have underperformed relative to the broader emerging markets equity index, as well as the markets in the developed nations. Pakistan's KSE-100 has significantly outperformed all BRIC stock markets over the ten years since BRIC was coined.
Haq's Musings: Is India Heading Toward Debt Crisis?
