India's crazy deficit, when it will explode?

[Azazel]

Actually I am pro in econ and you miss my point.

Global hedge funds are predators who will prey Indian currency and Indian assets. In other words, shorting their positions of indian targets, inr swaps or interest pegged Indian debt/bonds... They build huge positions over the year and by leverage they could easily overthrow Indian ship....

Another amateurish and ignorant post.Do you even know the meaning of regulation.Global hedge funds don't really invest in Indian because of regulation.Majority of Indian bonds are owned by Indians.Foreign investors invest mostly in corporate bonds.That too have strict capital control.

 

[Roll in deep]

India's GDP growth falls to 4.5%
India's GDP growth falls to 4.5% - Rediff.com Business

That's what I said, you can't keep on borrow money to sustain the economic growth.
When the "double deficit " hit dangerous line, and rating agencies threatened to downgrade you to "junk", you have to cut spending, then the growth sharp decline.

 

[Timewarner]

Hey guys! chill down India's fiscal and current account deficit are not going anywhere close to the danger line. This year's deficit has been contained at 5.2% of the GDP and is going to go further down to 4.8% next year. And it is silly to compare Singapore with India, because Singapore depends on foreign trade for survival while India does not. We can easily survive on our own.

 

[IndoCarib]

good news ! OP can relax now !

NEW DELHI—India's trade deficit in February narrowed to its lowest level in 10 months as exports grew for the second successive month, raising expectations that demand in Western economies is improving, which should help bridge India's wide current account deficit.

The south Asian economy's imports also showed signs of moderation, further helping close the trade gap.

The trade deficit narrowed to $14.92 billion in February, down sharply from $20.08 billion in January.

Exports rose to $26.26 billion from $25.5 billion in January. From the year-earlier level, February exports increased 4.25%, the second year-on-year gain in 10 months.

Imports fell to $41.18 billion from January's 45.58 billion.

The sharp fall in India's trade deficit is likely to calm worries over a ballooning current account gap that expanded to a record $22.3 billion, or 5.4% of gross domestic product, in the July-September period, primarily driven by high oil and gold imports and a sharp slowdown in exports over the past year.

India's Trade Deficit Narrows - WSJ.com

 

[Roll in deep]

In a move that could put fresh pressure on the rupee, India’s external sector risks worsened after the Reserve Bank of India (RBI) reported a record current account deficit (CAD) of 6.7% of gross domestic product (GDP) in the third quarter of the current fiscal.The steadily worsening balance of payments (BoP) outlook has been a central point of concern to not only RBI, but to the finance ministry as well. CAD is the sum of the trade deficit, exports less imports, and net invisibles such as accruals on account of software exports.

CAD widened to $32.6 billion mainly on account of a larger trade deficit and moderation in net invisibles. India’s total external debt stock stood at $376.3 billion at the end of December compared with $345.5 billion at the end of March. Of this, short-term debt was 24.4% at the end of December 2012 compared with 23.3% a year ago.
CAD was 5.4% of GDP in the preceding quarter, and 4.4% in the same period a year ago. CAD or Current Account Deficit is the sum of the balance of trade (i.e., net revenue on exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers.

In simplistic terms it means it is the sum total of Exports-Imports-Loan Repayments or FII outflows+remittances from NRIs.

A couple of years ago a CAD at 3% of GDP was considered high but now it is at 6.7%in the 3rd Quarter. It is expected to improve marginally in the 4th quarter due to better export figures but the problem is that as a percentage of the GDP with the denominator sinking the CAD percentage may not go down.

 

[narcon]

As long as non ethnic people rule India sans any national interests, India will suffer politically economically and socially.

Case in point is a kickback Queen with billions in Swiss bank and still plundering. If these funds were not looted from India, they would have been sitting pretty in government's kitty, providing cushion to CAD.

India's CAD is running alarmingly at 6.7% and increasing every day. There are no checks n balances exercises by our PMO, who is silent and busy with Scams after scams taking place in India since the decade.

Do you Indians know that India has lost lost trillion plus in Black money stashed overseas AND 200 billion dollar worth of Indian scams.

India would have had very big FOREX surplus, had it not been for these scams.

Read this link carefully and see under white rule how much India has lost:

List of scandals in India - Wikipedia, the free encyclopedia

 

[Ming]

Indian economy is in big trouble. I wouldn't be surprised if it collapsed.

 

[Beerbal]

Indian economy is in big trouble. I wouldn't be surprised if it collapsed.

good luck for you...

 

[neehar]

In a move that could put fresh pressure on the rupee, India’s external sector risks worsened after the Reserve Bank of India (RBI) reported a record current account deficit (CAD) of 6.7% of gross domestic product (GDP) in the third quarter of the current fiscal.The steadily worsening balance of payments (BoP) outlook has been a central point of concern to not only RBI, but to the finance ministry as well. CAD is the sum of the trade deficit, exports less imports, and net invisibles such as accruals on account of software exports.

CAD widened to $32.6 billion mainly on account of a larger trade deficit and moderation in net invisibles. India’s total external debt stock stood at $376.3 billion at the end of December compared with $345.5 billion at the end of March. Of this, short-term debt was 24.4% at the end of December 2012 compared with 23.3% a year ago.
CAD was 5.4% of GDP in the preceding quarter, and 4.4% in the same period a year ago. CAD or Current Account Deficit is the sum of the balance of trade (i.e., net revenue on exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers.

In simplistic terms it means it is the sum total of Exports-Imports-Loan Repayments or FII outflows+remittances from NRIs.

A couple of years ago a CAD at 3% of GDP was considered high but now it is at 6.7%in the 3rd Quarter. It is expected to improve marginally in the 4th quarter due to better export figures but the problem is that as a percentage of the GDP with the denominator sinking the CAD percentage may not go down.

6.7% in third quarter meaning in october-dedember 2012..now its 4.8% so chill even with that we still have $300 dollars.and our debt is hardly 50% of our gdp..compare it with japan or u.s or any european economy..if india falls then what must happen to them??
CAD likely to be at 4.8 pc in March qtr, says HSBC - The Economic Times

Indian economy is in big trouble. I wouldn't be surprised if it collapsed.

even with 4.3% of CAD india got $300 billion dollars unlike ur friend who hardly got $13 billion..dont worry abt our economy its gonna boom

 

[Ayush]

Indian economy is in big trouble. I wouldn't be surprised if it collapsed.

I personally disagree with your statement.
anyways, welcome to pdf.

 

[xuxu1457]

every year 41billion$ gold import, so the really deficit is not that large

 

[funtoosh]

Every country except China has a trade deficit - the only solution is ban Chinese cr@p and the deficit will become a surplus.

or.. you dont have to give that deficit back to china

 

[my2cents]

The United States can print dollars.
Australia.Canada.Brazil have resources to pay debt.
And Australia trade deficit only $4B, Canada trade deficit only $10B , and Brazil has a $10B trade surplus.

And India $200B trade deficit and $200B fiscal deficit?

Look at the strength of INDIA that is its population. If you break down deficit per capita then it comes to $400 per person compared to United States which is $40000 per person. You can have deficit and still have positive growth.

 

[Roll in deep]

You all saw it now.

 

[Lightningbolt]

It's exploded now