India one of the worlds largest debtor nations on earth

[Kyusuibu Honbu]

List of countries by external debt - Wikipedia, the free encyclopedia

and do check the percentage of debt in GDP.

what a joke by rupee news..

Made my day already..

SOCOM ... mate, try harder.. one day u will get "some" attention.

LOL

Some people have no knowledge of economics.

Atleast we can pay our debts,unlike some........

Hope the mods make a rule for members to refrain posting from such sources.

 

[Donatello]

6. Denmark - 316%
External debt (as % of GDP): 316%

Gross external debt: $627.6 billion
2009 GDP (est): $198.6 billion

7. Sweden - 264.3%
External debt (as % of GDP): 264.3%

Gross external debt: $881.5 billion
2009 GDP (est): $333.5 billion

8. Austria - 256.2%
External debt (as % of GDP): 256.2%

Gross external debt: $827.9 billion
2009 GDP (est): $323.1 billion

You cannot compare these nations with India or Pakistan in anyway.

They have higher debt because their economies are more proficient at refinancing existing debts. The only nation that is in trouble is United States which owes it to not their own economy but China, which is a huge factor, given China's rise as an economic power.

The thing is that all these above mentioned nations have a very high per capita income and high standard of living meaning the governments can always pay back the debt if required.

In case of India or Pakistan, if start paying the debt we will curtail already, you know pathetic federal programs like health and education, and hence would not be left with anything.

 

[Kyusuibu Honbu]

Debt is OK if you have economic growth, because you will be able to pay it back. So India should be fine.

The trouble is with countries like Greece and Ireland, they have a lot of debt but not much economic growth.

Even if some hypothetical situation arrives where we may have to pay all our current debts i.e 242.8 billion,it isn't difficult as our foreign reserves are enough to take care of that.

But i wonder how nations like Luxembourg whose external debt is a whooping 3854% of their GDP?EU bailout maybe?

 

[Devianz]

Rupee news crap... SOCOM you should be more worried about how you will payback your country's debt. Pakistan debt is 31% of GDP compared to ~20% for India.... At least we have a booming economy.

Hey guys.. Luxembourg has a debt of 3854% of GDP, that's a per capita debt of $4 M. I thought they were one of the richest countries in terms of per capita income.

 

[Chinese-Dragon]

Even if some hypothetical situation arrives where we may have to pay all our current debts i.e 242.8 billion,it isn't difficult as our foreign reserves are enough to take care of that.

But i wonder how nations like Luxembourg whose external debt is a whooping 3854% of their GDP?EU bailout maybe?

That's a very good point.

India has enough currency reserves to pay off the entire sum, if needed. So paying the interest on the debt should be no problem at all, especially with the high level of economic growth.

As for Luxembourg, I really have no clue what happened to their debt situation... it looks quite bad for them though...

 

[JanjaWeed]

so what's your point?? atleast we don't go crying around the world for debt relief. most of the developed and developing nations are in huge debts. that's only because they need that money to grow even further. they don't believe in surviving on charity & also don't cry foul when it's the time to pay that debt back.

 

[Agnostic_Indian]

Perhaps we should borrow some money from pakistan..

 

[RamGorur]

And Benniji just had to spoil their party.

Party pooper

 

[Kyusuibu Honbu]

Lets concentrate on educating ourselves about this external debt thing clearly.I mean how can tiny nation like Luxembourg have $2 trillion external debt? thats total FR of China .Even EU can't bail them out.

Is there an economist in the house?

 

[karan.1970]

My signature..And Foxbat's..And Diva's and Originally Words of wisdom from Karthic..

 

[HUD1]

After the economic meltdown which did not affect India , how can u expect India has largest debt. Countries effected by the meltdown borrowed heavily to save themselves. Ruppee news like the Punjab kesari of the internet

 

[CardSharp]

Debt is OK if you have economic growth, because you will be able to pay it back. So India should be fine.

The trouble is with countries like Greece and Ireland, they have a lot of debt but not much economic growth.

Yep it's a race between interest accrued from debt and growth, but this NOT to say just because rich countries like the above have debt that it is good to have debt and run a deficit every year.

 

[nForce]

@ topic...

The total external debt of India at the end of September stood at $242.8 billion, an increase of $18.2 billion over end-March.

It is interesting to note that the total forex reserve of India stands at $ 252 billion as of 31st March 2009.It is expected to grow at 10.75 % upto a figure of $ 279.1 billion due to the valuation gain from a falling US dollar and increase in the inflow of investments and deposits by the end of FY'10.

That means with the total Forex reserve,India can pay off all of its debts right now if the RBI chairman wishes to.

But then the debts have their own terms and conditions.Some are short term and some are long term loans.The loans are paid off in the manner they are supposed to be.Also at the same time a healthy purse of Forex reserve has to be maintained to keep the market running.Taking a top down view,India is in a much better position,so far as the debts are concerned,as compared to its other South Asian neighbours as well as other counties of the World.As a matter of fact,the country has surplus wealth.

 

[karan.1970]

There is a concept of Debt to Equity ratio in Financial accounting. Not having any debt is as bad as having excess debt. Its all about balance and leverage. As long as India's bond rating stays in the investment grade, it means that India is able to leverage its financial health to get additional cash flows to accelerate its growth. Financial Management 101

 

[somebozo]

First ruppee news is not a source to quote.
Secondly nobody can match the feat of USA, UK, Greece and rest of europe.