Who Pays When India’s Billionaires Don’t Go Bust?

[AirRodgers]

Who Pays When India’s Billionaires Don’t Go Bust? - Bloomberg

The dramatic slowdown in India’s economy over the last few months has exposed what many of us suspected all along: that the country’s economic boom in the last decade was largely fueled by debt, enabled by unprecedented inflows of foreign capital, rather than by broad, sustained and sustainable liberal reforms.

An August report titled “House of Debt -- Revisited” from Credit Suisse Group AG reveals that 10 of India’s biggest industrial conglomerates, including Anil Ambani’s Reliance companies, Ravikant Ruia’s Essar Power Ltd., Gautam Adani’s Adani Power Ltd. and the Essar Group, had combined gross debts of more than $100 billion. Much of this debt -- the highest leverage since the late 1990s -- is denominated in foreign currency.

A weakened rupee has only increased the size of the debt in local terms; the overall slowdown in the construction, infrastructure and mining sectors hasn’t helped. According to Credit Suisse, the moment of reckoning will come early next year, in the fiscal period ending March 31. By then, slowing growth will have seriously affected the ability of these corporations to make profits and service their debts, repayments for which will be much higher in fiscal 2014.

 

[wolfschanzze]

Of course when Usa can rescue JP morgan and others, the same will be with India, The Article wants India to relax its FDI policy(Liberal reform) to the extent that in order to pay the external debt it should sell its companies or let Foreign companies have monopoly over indian market.Is it not implying you let us rule you then i donno what it is.

I am sure a country of 1.2 billion population can find a solution to the crisis,just like when there were thousands of sanctions against India when we exploded the Nuclear bomb, but we still managed to build our supercomputer and other things,but we survived and prospered didn't we?The same will happen this time too.Don't write us off so soon, as a 5000 year old civilization and the only oldest surviving one we know what it takes to survive.

 

[IndoCarib]

This AirRodgers is american_millenium who was banned recently.