India: $222 billion debt maturing this fiscal to put pressure on forex kitty

[Dark-Destroyer]

Indians don’t like it when you start giving them facts they derail the thread and start talking about pakistan because :

1) they have no clue or argument so instead of a balanced discussion they start talking shit which for them is easier to do

2) they repeat point (1) again and again

 

[BHarwana]

Current situation of Indian economy lol

https://twitter.com/x/status/1026477560627060736

 

[Crixus]

Percenta wise it’s less then 5% ...... hope you understand percentage we collects more then 17 billion USD just in GST every month..... no worries......

Dude your Forbes article is from July 5th and you have just lost $22 billion in foreign reserves please get updated on your economy.

https://twitter.com/x/status/1026091707065032704

India is losing a billion dollars a week lol and you people mock me lol. This is just an expense to make rupee stay in strength. If RBI don't throws money from reserves there is no dollar in market to do business.

https://twitter.com/x/status/1025801060760215552

India tries to compete with China lol this is the true state of indian economy.

Here see dum dum the interest rates also just went up means Indian growth going to come down lol.

https://twitter.com/x/status/1026455321672384513

Facts the guy don’t even know the definition of facts ...... he knows more the World bank , IMF and credit rating agencies.....

Indians don’t like it when you start giving them facts they derail the thread and start talking about pakistan because :

1) they have no clue or argument so instead of a balanced discussion they start talking shit which for them is easier to do

2) they repeat point (1) again and again

 

[kris]

Just the 3rd time since Independence that a democaratically elected Govt was able to complete it's term and these guys are giving advice on how should one vote.

One was even dreaming of balkanization of India. Seems east Pakistan still hurts.

Is this for real? Three governments completed their term it's really surprising

 

[Crixus]

Don’t you know , how Assad Durrani explained about the elections in Pakistan

Is this for real? Three governments completed their term it's really surprising

 

[BHarwana]

Oil price going up. Interest rates going up. Inflation going up. Dollar price going up

Now what is coming down.

Foreign reserves going down. Foreign direct investment going down. Exports going down

The Indian economy.

 

[BetterPakistan]

@SunilM

Welcome here

 

[Pakistani Aircraft]

India only has $529 billion of external debt, even though that's almost as much as the combined GDPs of Pakistan-Bangladesh put together, it is nothing to worry about.

 

[Śakra]

Is this for real? Three governments completed their term it's really surprising

So far no PM has served a full 5 year term.

 

[Crixus]

Still you guys are the one with the biggest begging bowl , 12 billion bailout

India only has $529 billion of external debt, even though that's almost as much as the combined GDPs of Pakistan-Bangladesh put together, it is nothing to worry about.

 

[AyanRay]

India only has $529 billion of external debt, even though that's almost as much as the combined GDPs of Pakistan-Bangladesh put together, it is nothing to worry about.

That's less than 20% of India's GDP. The corresponding figure is 32% for Pakistan. Our reserves cover more than 75% of our external debt, yours about 10%. So, again, when are you approaching the IMF?

 

[Viny]

Mumbai: Nearly $222 billion of shortterm debt, equal to about half of India’s foreign exchange reserves, will come up for maturity this fiscal year, ringing alarm bells about external sector stability.
This debt will mature by the end of March 2019, latest status on external debt indicates. This is 52 per cent of India’s forex reserves at the end of March 2018. According to RBI’ weekly forex data, reserves have dropped $18 billion from there by the end June and another $2 billion in July.

The rupee has lost more than 5 per cent to the dollar since this April, as foreign investors pulled out of Indian markets and rising crude oil prices increased demand for dollars to pay for imports. The central bank has sold about $20 billion of dollars in the spot and forward markets to defend the local currency.
Short-term debt liabilities are expected to rise further to fund import demand. With no corresponding pick up in inflows, the strain on the rupee is also expected to add to local inflationary pressure. The central bank has already raised its benchmark policy rate-repo rate twice since June to rein in inflation and attract foreign investments.
The short-term debt liability and increasing import cost are expected to weigh on current account deficit, which already has more than doubled to 1.9 per cent of GDP in March.
Meanwhile, the central bank is expected to continue selling dollars to defend the rupee.

If the rupee continues to drop despite dollar sales by the Reserve Bank of India, some economists expect the government and RBI to consider the issue special bonds, like what they did in 1999 and 2013. India issued Resurgent India Bonds in 1999 and launched a special foreign currency non-resident deposits scheme to garner foreign reserves. The deposit scheme in 2013 helped the RBI raise around $30-35 billion and calm the rupee.
The finance ministry has reportedly met economists to consider feasibility of such an issue. “There is a need to come out with some innovative scheme to prop up reserves,” said an economist with a large company.
Bank of America Merrill Lynch said in a report that if the rupee touches Rs 70 to the dollar and the inflows do not pick up, then there could be an NRI bond issue by the end of December to prop up reserves.

https://m.economictimes.com/markets...ssure-on-forex-kitty/articleshow/65287657.cms


@SunilM

Indian govt is already feeling the pain of what I said days ago. To stop the out flow of currency RBI used its first tool and increased the interest rate to 6.5% but now this will effect Indian economic growth and slow down the economy. The economic tools always come with collateral damage. It is better for RBI to let the rupee devalue rather than using such tolls to further damage Indian economy. Instead of decreasing the buying power of indian people buy letting rupee free float Modi govt is decreasing the buying power by hiking interest rates so that blame don't falls on govt and economic publicity of India remains as good and progressive market this really shows the true nature of indian economy. The Indian govt is in trouble and giving supporting pillars instead of bringing in investment.

Understanding Indian Economy 101 Lessons once again, I hope this helps

See the total debt of India and focus on areas marked in red and blue.

Do you see that external debt percentage of GDP has decreased over the years.
Do you see that majority of Debts around 78% is non Government Debt, that means those are business debts, now either business houses will pay out this debts from the provisions that they have created or they will roll over the loans, in both the cases funds remain stable. In case the company is bankcrupt and doesnt pay, in that case too, thats business to business, doesnt affect at government level.

Out of 222bn that is to payed out this year, 5bn is Sovereign Debt.
Approx 90bn are NRI Deposits, majority of them will again get reinvested, so that just account procedure.
And for other short term debts, as explained earlier how appropriations are done.


Now see the given below details marked in blue column

We are already paying around 20% of Total debt as short term debt maturity every year from last 10yrs or so, whats new or panicking this time?

Stop fussing around on numbers if you dont know whats behind the numbers, economics and understand economy movements need co relations.

Data source: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=44350

 

[kris]

Don’t you know , how Assad Durrani explained about the elections in Pakistan

Who cares

 

[ThinkLogically]

@BHarwana is right, also u can see from this report too, they dont have this much time!
Indian constitution also recognizes Bharat as a union of states not as one nation. In india there is a lot of diversity, where 875 languages r spoken unlike Pakistan india also has abt 10 or so national languages.

Its basically a union of people who share a very little in common with eachother, its just this economic and social development that keeps them intact, this is a realization we Muslims reached by ruling india, in the era of Emperor Akbar, thats why he was forced to marry a hindu Rajpoot Jodha Bai. And then made their son together his successor........and later till aurangzeb era we were able to successfully make then Hindustan a Golden Sparrow.

Thats why, i said, If India wants to stay intact, they must get their act together and work for its development socially and on justice itself. These two things are the only real reasons Pakistan was also made by Muslims of India, and these also r the two reason why its future balkanization can commence as well.

Indians need to start learning fast like us Pakistanis and for that to happen they first need to do the diagnosis of the problems facing their country in intelligent and logical way, rather then by arrogance and superiority complex guided by mere emotions, for their own good and for the sake of their country's unity.

@Zarvan yr inputs r required.

Then WTF is Caliphate.

Don't you immature imbelliciles realize that we alreay have a Hindu version of Caliphate. You guys can breakup India only in your dreams. Sweat dreams babies.

 

[BHarwana]

Now these are not my statements these are Indian saying this them selves.

https://twitter.com/x/status/1025621057741496321

https://twitter.com/x/status/1024867015679467520