BAF ordered 8 Su-30ME variant

[Nilgiri]

BD could pay upfront as it has more than enough foreign reserves

That is not how foreign reserves work. You think India is gonna use any of its 400 billion stockpile of USD to buy military goodies?

 

[bluesky]

That is not how foreign reserves work. You think India is gonna use any of its 400 billion stockpile of USD to buy military goodies?

We know that India keeps on stockpiling with borrowed dollar from European countries to keep its currency fall below BD Taka.

 

[Nilgiri]

We know that India keeps on stockpiling with borrowed dollar from European countries to keep its currency fall below BD Taka.

my god what an illiterate you are.

 

[bluesky]

my god what an illiterate you are.

i am not. Search the sources to know about my statement. Actually, you may already know about it.

my god what an illiterate you are.

I am not. Do some research by yourself. Actually, you must already know that India remains the largest borrower in the world.

 

[Nilgiri]

I am not. Do some research by yourself. Actually, you must already know that India remains the largest borrower in the world.

Yay more illiteracy. Its hillarious you have no idea how foreign reserves are generated and are asking me to "research by yourself" <----nice engrish btw.

But then again you got smacked like the BeeDee you are regarding Indian made cars in Japan:

https://defence.pk/pdf/threads/whatever.46703/page-4828#post-10263120

Sorry you can't pole vault to intelligence.

 

[bluesky]

Yay more illiteracy. Its hillarious you have no idea how foreign reserves are generated and are asking me to "research by yourself" <----nice engrish btw.

But then again you got smacked like the BeeDee you are regarding Indian made cars in Japan:

https://defence.pk/pdf/threads/whatever.46703/page-4828#post-10263120

Sorry you can't pole vault to intelligence.

21sr Century genius, please click the link below and see how your India lives on hundreds of billions of borrowed money from abroad:
http://www.firstpost.com/world/indi...for-70-years-says-lending-report-2581900.html

 

[Nilgiri]

21sr Century genius, please click the link below and see how your India lives on hundreds of billions of borrowed money from abroad:
http://www.firstpost.com/world/indi...for-70-years-says-lending-report-2581900.html

And world bank = all borrowing any country does? Something an illiterate would think I suppose.

How much would you venture China borrowed in total from abroad in just one year?

Since your words were (Like the idiot you are).: India remains the largest borrower in the world.

Not to mention you still think borrowing == forex reserves....which is so stupid beyond words I don't know where to start on that.

You are an ok decent guy lot of the time:

https://defence.pk/pdf/threads/the-...er-than-pakistans.536089/page-9#post-10141603

But economics is not your strong suite, just let it be buddy.

 

[Tanveer666]

That is not how foreign reserves work. You think India is gonna use any of its 400 billion stockpile of USD to buy military goodies?

pls elaborate? how does india make its payment for the foreign arms it purchases

 

[tarpitz]

A day dream from one year ago.

 

[bluesky]

A day dream from one year ago.

Soon, the purchase will materialize to give you continuous nightmares. Wait until the air bases are constructed.

 

[Nilgiri]

pls elaborate? how does india make its payment for the foreign arms it purchases

The basic function is just like any private individual that has rupees in hand and wants to import something from say USA (and thus needs USD). He goes to bank and effectively exchanges rupees for USD to use for the import.

There are two main options (for Indian govt)....approach central bank (RBI) or some other USD liquidity source (local or foreign) that will accept rupees (or proxies like bonds/securities) that it has effectively extracted from the economy (at cost) in return. What it chooses in this regard depends on the situation at hand (what gives the best short term and long term cost w.r.t interest rate/REPO/effective seigniorage and which is more relevant etc). Suffice to say in general this will be the central bank most of the time esp with CAD situation + marginal investment grade bond of India.

None of this involves going to RBI and saying "hand me X USD to spend" for free (which would be something you see in a country that could not build up sustainable forex in first place and most likelihood is banana republic outside of the IMF system). The Indian govt has to forego equivalent rupee liquidity or another parallel....it is also legal issue in RBI operation clause. If a hypothetical govt does not do that (i.e just goes to central bank and says give me the USD for nothing in return)...it basically is giving middle finger to its population (and foreign investors) who played by the rules to generate that forex...and will hurt everything badly macroeconomically. Same goes for simply printing extra local currency for specific purpose of buying the USD from central bank (rather than part of overall monetary policy for whole economy).

Actual structural extraction of USD and other forex (and both also cannot be done for "free" either) is nearly strictly for two purposes: exchange rate management policy and also insurance (so the country doesnt face macroeconomic crisis as far as trade etc goes) when there is some sudden negative input in balance of payments (in fact forex stockpile cost significant money long term to have given their "ROI" is very very low....just like financing an insurance policy). The relevance of doing this for a defense purpose only ....would be bad because defense import is a tiny tiny percentage of total import.

 

[Tanveer666]

The basic function is just like any private individual that has rupees in hand and wants to import something from say USA (and thus needs USD). He goes to bank and effectively exchanges rupees for USD to use for the import.

There are two main options (for Indian govt)....approach central bank (RBI) or some other USD liquidity source (local or foreign) that will accept rupees (or proxies like bonds/securities) that it has effectively extracted from the economy (at cost) in return. What it chooses in this regard depends on the situation at hand (what gives the best short term and long term cost w.r.t interest rate/REPO/effective seigniorage and which is more relevant etc). Suffice to say in general this will be the central bank most of the time esp with CAD situation + marginal investment grade bond of India.

None of this involves going to RBI and saying "hand me X USD to spend" for free (which would be something you see in a country that could not build up sustainable forex in first place and most likelihood is banana republic outside of the IMF system). The Indian govt has to forego equivalent rupee liquidity or another parallel....it is also legal issue in RBI operation clause. If a hypothetical govt does not do that (i.e just goes to central bank and says give me the USD for nothing in return)...it basically is giving middle finger to its population (and foreign investors) who played by the rules to generate that forex...and will hurt everything badly macroeconomically. Same goes for simply printing extra local currency for specific purpose of buying the USD from central bank (rather than part of overall monetary policy for whole economy).

Actual structural extraction of USD and other forex (and both also cannot be done for "free" either) is nearly strictly for two purposes: exchange rate management policy and also insurance (so the country doesnt face macroeconomic crisis as far as trade etc goes) when there is some sudden negative input in balance of payments (in fact forex stockpile cost significant money long term to have given their "ROI" is very very low....just like financing an insurance policy). The relevance of doing this for a defense purpose only ....would be bad because defense import is a tiny tiny percentage of total import.

TL;DR: Indian government goes to the reserve bank of india, buys dollars via rupees, and makes payments for its imports using the dollars it bought?

 

[wali87]

what a joke, why does Banglas even need an airforce? they have the Indians to protect them since they are subservient to them. just accept it openly now.

 

[ghost250]

what a joke, why does Banglas even need an airforce? they have the Indians to protect them since they are subservient to them. just accept it openly now.

why does pakisthan need an airforce??they have the chinese to protect them since they r subservient to them.just accept it openly now.

A day dream from one year ago.

yes,just like ur 135m frigate nd kilo class submarine..

 

[tarpitz]

yes, just like ur 135m frigate nd kilo class submarine..

Building 6 frigates in 12 years is just another BD's day dream. (We won't be surprised if the rumours also turn out to be a hoax)

No country except BD can build 6 frigates in 12 years including the design and testing period.[emoji1]

For us, building a frigate take appx 4-5 years for a lead ship and 3 years for the follow on ones.

You can see how busy Myanmar naval shipyard is.

Components of a new frigate can be seen clearly.

Anyway . . stop trolling nd keep on topic.