India one of the worlds largest debtor nations on earth

[nForce]

India one of the worlds largest debtor nations on earth​

Posted on August 29, 2010 by The Editors

Here is the table from the Indian Reserve bank which claims that Bharat is fifth in external debt. Most analysts know that the claim ( US $ 229.9 billion (22.0 per cent of GDP) paints a rosy picture and the real debt is more than a tirllion Dollars. The debt is also growing exponentially.

Reserve Bank of India

Where exactly the report from RBI claims India to be fifth in external debt??I am sorry if I missed out anything....

 

[indian_reality]

Coz of people like somebozo I still have confidence in Pakistan and that it will relinquish the ancient mindset and rise up as a developing force in Asia and the world along with India....but I think such sensible people are in minority!

P.S. : Though that article is downright ridiculous, yet I have confidence that Indian politicians can manage a financial disaster anytime.

 

[ambidex]

Pakistan's debt-to-GDP ratio crosses 61%
June 27, 2010

Pakistan's central bank said the country's total debt-to-GDP ratio has crossed 61 percent during the current fiscal year, breaching the 60 percent limit set under the Fiscal Responsibility and Debt Limitation Act, local media reported on Sunday.

According to the report of the State Bank of Pakistan on its official website, Pakistan's external debt-to-GDP ratio hit 30 percent while the domestic debt-to-GDP ratio mounted to an alarming level of 31 percent.

Despite better performance on the external front, domestic public debt remains on the rise, up by 20 percent during the 11 months of the current fiscal year, said the report.

Pakistan has been facing the burden of mounting debt pressure. The same stems from escalating fiscal deficit of the country as compared to the budgetary estimates.

During the current fiscal year of 2010 which closes at the end- June, the fiscal deficit rose to 5.2 percent of the GDP against the budgeted 4.7 percent. The domestic side remained a prominent source of financing fiscal deficit.

A differentiating factor came in the form of the International Monetary Fund's (IMF) budgetary support under its augmented funding plan for Pakistan.

The contribution of the IMF funding in the overall external financing of the country has risen. The IMF's total share in external debt has risen from 4 percent in the fiscal year of 2006 to 14 percent till the third quarter of the current fiscal year.

Contribution of public debt under total external debt dropped to 82 percent from 91 percent in fiscal year 2006.

The disbursements under the IMF program are expected to conclude in fiscal year 2011, but it remains to be seen whether the government will seek further budgetary support from the global donor during fiscal year 2011 in case additional inflows from sources such as the United States under the Kerry-Lugar and Tokyo pledges fail to materialize on time.

Even though the IMF program contributed towards bringing stability, favorable external factors also played a major role.

The country's current account deficit has shown substantial improvement as it dropped by 66 percent during the first 11 months of the current year. Credit should be given to better export performance, which registered a growth of three percent during the period.

However, the real savior was in fact the recessionary condition in the global markets, which kept commodity prices, especially oil under stress. The result is evident as imports registered a decline of 3.5 percent.

Another commendable aspect is record level of remittances, which is set to reach 8.8 billion U.S. dollars in the current fiscal year, thereby providing desirable support to the overall balance of payments in the absence of foreign direct investment.

Despite better performance on the external front, domestic public debt is still on the rise. Overall public debt, thereby, remains a strong source of vulnerability to the economy and mounting domestic debt is also strongly suggesting an interest rate rise in the offing.

Source: Xinhua

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Debate Sawal Yeh Hai 8th August 2010

 

[DV RULES]

Oh no, india being the largest debtor nations on earth,really bad news for half of the population living in extreme poverty condition and those 650 million waiting in line for .....

You are right but usually facts are for open mind people but not for closed eye people, so i am wishing you good luck if could get success to prove it some guys of forum.

 

[Capt.Popeye]

Originally Posted by nForce
"Who runs this Rupee news thing???And how much of a pathetic idiot a person would be to believe in it??? "

And DON'T forget the BEAUTIFUL & LUSCIOUS "Ms. Christina Palmer" !!!
In the face of such INTELLIGENT and SCHOLARLY people; what can we say?
nothing.

 

[S_O_C_O_M]

The Hindu Business Line : India's external debt rises by 8.1% at Sept-end

India's external debt rises by 8.1% at Sept-end ​

Our Bureau

New Delhi, Dec. 31

The country's total external debt stock, at the end of September, recorded an increase of 8.1 per cent from the end-March 2009 estimates.

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

While the long-term debt showed an increase of $19.2 billion (10.6 per cent) and went up to $200.4 billion, the short-term debt came down by $985 million (-2.3 per cent) to $42.4 billion. The increase in external debt over the previous quarter stood at 5.7 per cent or $13 billion.

Valuation effect on account of depreciation of the dollar against international currencies accounted for $8.3 billion (45.6 per cent) of the total increase in the external debt. The increase in total external debt also reflected the impact of inclusion of cumulative SDR allocations to India by International Monetary Fund as a long-term debt liability in external debt statistics.

The debt-service ratio, i.e. the ratio of total debt service payments to current receipts worked out to 4.9 per cent during April-September 2009 as against 3.7 per cent for April-September 2008. The ratio of short-term external debt to foreign exchange reserves, which was 17.2 per cent at end-March 2009, came down 15.1 per cent at end-September 2009. The ratio of Government external debt to GDP has remained around 5.0 per cent in the last three years.

 

[lcloo]

The debt situations of Europe, US vis Asian countries (China, India & Japan) shows that the oriental nations will be the future economic powers.

The western economist use sovereign credit ratings to justify their high debts. If no one is willing to buy their debts, they will all go into big time financial crisis instantly.

India is doing OK, especially with their strong economic growth. We will see a new Asian Century very soon. The world domination of the West is lossening day by day.

 

[deckingraj]

The debt situations of Europe, US vis Asian countries (China, India & Japan) shows that the oriental nations will be the future economic powers.

The western economist use sovereign credit ratings to justify their high debts. If no one is willing to buy their debts, they will all go into big time financial crisis instantly.

India is doing OK, especially with their strong economic growth. We will see a new Asian Century very soon. The world domination of the West is lossening day by day.

Economies are more intertwined then it was in the past....Western economies catching cold will ensure Asia economies sneezing spree do not end for good....

 

[Coltsfan]

Any economists on forum?

I have very rudimentary knowledge of economics, but if India's external debt is increasing does it not imply that

1) Foreign agencies and govt. are not averse to lending $ to India, so we do have some good credit worthiness, and

2) Isn't this $ being pumped into the national economy which would make our economy grow?


The day we start to borrow just to make interest payments on our loans, that would be the day we are in trouble.......

 

[siegecrossbow]

17. Italy - 147.4%
External debt (as % of GDP): 147.4%

Gross external debt: $2.594 trillion (2009 Q3)
2009 GDP (est): $1.76 trillion

The U.S. is only 20! Thank God. The economy must not be as bad as what everyone thinks then! I may have the chance to get some genuine work when I graduate


18. Australia - 124.3%
External debt (as % of GDP): 124.3%

Gross external debt: $1.025 trillion (2009 Q2)
2009 GDP (est): $824.3 billion

19. Hungary - 121.9%
External debt (as % of GDP): 121.9%

Gross external debt: $225.56 billion (2009 Q2)
2009 GDP (est): $184.9 billion

20. United States - 96.5%
External debt (as % of GDP): 96.5%

Gross external debt: $13.77 trillion (2009 Q3)
2009 GDP (est): $14.26 trillion

The U.S. is only 20! Thank God. The economy must not be as bad as what everyone thinks then! I may have the chance to get some genuine work when I graduate

 

[Hutchroy]

Daily Times - Leading News Resource of Pakistan

Civil society to launch debt write-off campaign

* Pakistan debt burden to rise to $74 billion by 2014

* Strong political will needed to convince WB, IMF, ADB

Staff Report

ISLAMABAD: The civil society on Monday announced to launch a campaign to demand an unconditional write-off of Pakistan’s massive external debt.

Talking to reporters on Monday at the National Press Club, organiser Aasim Sajjad said that the campaign would be started on September 2, with a mass rally in front of Parliament House.

“Representatives of progressive political parties, intellectuals, trade unions, student groups, non-government organisations (NGOs) and traders will participate in the rally,” Aasim said.

“According to current estimates Pakistan debt burden is projected to reach $74 billion by 2014. Pakistan already allocates almost $3.5 billion every year to meet its debt obligations and this figure will increase exponentially over the next few years,” Asim said, adding that parliament needed to seriously discuss the issue.

“Only a strong political will is needed to convince the World Bank, the International Monetary Fund and the Asian Development Bank to take the decision,” he said. Representatives of the civil society also released a white-paper authored by Asim Sajjad, which details Pakistan’s chronic debt crisis and presents the case for getting a write-off on the basis of international legal norms and recent precedents.

Speaking on the occasion, Dr Farzana Bari asserted that writing-off Pakistan’s debt would strengthen the democratic process and allow more domestic resources to be utilised for resolving the problems being faced by the masses. Fearing the likelihood of famine in the aftermath of the floods, she said that urgent action was needed to provide food to the flood-affected people.

“It is imperative to devote as many resources to prevent the outbreak of famine as possible,” she said, adding that the government faced a huge shortage of funding. Other speakers including Nisar Shah, Sarwar Bari, Aimal Khan and Alia Amirali stressed that debt re-scheduling was no longer an option for Pakistan. “The debt that was re-scheduled during the previous government is going to mature over the next few years, which will further increase the debt burden, instead of decreasing it,” they said. The speakers also cited the examples of other developing countries, whose debt had been written-off after facing natural calamities, especially Haiti.

They said that the government would not be able to rebuild the destroyed infrastructure in the flood-affected areas, as long as it had to spend huge amount of funds on debt servicing.

 

[Undivided Kashmir]

As you guys know all these statistics are like a Bikini showing all the unncesessary parts but hiding the vital parts.

People will only look at the numbers in which they are interested in not the whole of the picture.