India Shining? Or the Greece of Asia?
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Ignited Mind
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Source: PM Manmohan Singh's twitter account.
Archie
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Then what about china
Since their total debt is 164% of a falsely inflated GDP
For further info check my post on previous page or use this link
How Will China Pay Off Its Debt? - Forbes
Diamond_Gold
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Pity! you must have a taste of such live here as a cheap and unskill labourer. However, these labourers deserve more respect than those who come here solely for the purpose of leeching on us.
An article from a presenter of an anti-China program can't make any sense....
You should know ..Let me show you.
China government revenue 2011: $1.65 trillion
China government expenditure 2011 : $1.72 trillion.
The fiscal deficit : $75 billion, 1% of GDP.
See my post:
http://www.defence.pk/forums/world-affairs/168293-2011-china-government-revenue-up-24-8-1-65-trillion.html
China trade surplus in 2011: $200 billion.
How could China has a 170% GDP debt?
Now we turn to India.
India government revenues 2011: $218.7 billion
India government expenditure 2011: $311.2 billion
The fiscal deficit : $100 billion, 50% of government revenue and 6% of GDP ....wow.
India trade deficit in 2011 : 185 billion.
Economy of India - Wikipedia, the free encyclopedia
Through the comparision, you may know why China has a AA rating , while India is only BBB-.
You should know ..Let me show you.
China government revenue 2011: $1.65 trillion
China government expenditure 2011 : $1.72 trillion.
The fiscal deficit : $75 billion, 1% of GDP.
See my post:
http://www.defence.pk/forums/world-affairs/168293-2011-china-government-revenue-up-24-8-1-65-trillion.html
China trade surplus in 2011: $200 billion.
How could China has a 170% GDP debt?
Now we turn to India.
India government revenues 2011: $218.7 billion
India government expenditure 2011: $311.2 billion
The fiscal deficit : $100 billion, 50% of government revenue and 6% of GDP ....wow.
India trade deficit in 2011 : 185 billion.
Economy of India - Wikipedia, the free encyclopedia
Through the comparision, you may know why China has a AA rating , while India is only BBB-.
Idgt go learn some economics before posting stuff about national debt & its correlation to fiscal deficit/expenditure ! Most of these high IQ CN mainland & HK residents' posts on PDF shows why they love to copy stuff & how the CPC artificially lowers the number of people BPL by employing this $ 0.02 army
Alphacharlie
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we should not mock India .. we too are in extreme mess .. PKR is 93.53 today
I must appreciate Amir`s response.
Gentlemen please contribute to thread refrain from Trolling.
KRAIT
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GOOD READ
2012 is not 1991, India can't live in self-denial
By: NK Singh
When I walked into the room of finance minister Manmohan Singh shortly after June 21, 1991, to congratulate him, he told me that "we will change India". Although I was a point-man dealing with the complex negotiations with the IMF and the World Bank, I had no inkling of the far-reaching changes to be unravelled in the budget presented to Parliament on July 24, 1991.
Our economic landscape has changed permanently. Comparing the present economic malaise with 1991 may be exaggerated. Foreign exchange reserves were less than $1 billion in June 1991, adequate to cover two weeks of import, compared with $290 billion today, adequate to cover a period of seven months. Average GDP growth rate in 1991-92 (at 1999-2000 prices) was 1.3% compared with the average of the last five years at 7.95%.
The economic infrastructure is far more diversified, domestic savings rate -which impacts investment-gearing ratio at current prices - improved from about 20% of GDP to 31.6% last year and FDI inflows, which were a modest $500 million then, have touched $42 billion.
Indian corporates are healthier and are seeking meaningful global investment opportunities, including some high-profile strategic investments. Given our young population with unsaturated consumption as a driver of growth, the India opportunity and growth story is one of the most notable successes of the last decade.
So, are comparisons with 1991 totally misplaced? Notwithstanding many inherent strengths, some of which have been mentioned above, there are four significant vulnerabilities that prompt analysts to seek such comparisons. First and foremost, the macroeconomic vulnerability. The fiscal deficit, which was 5.39% in 1991, is 6.9% in 2011-12. Current account deficit, which was 3% then, was close to 4.3% in March this year. Domestic savings rate have come down sharply from 36.9% in 2007-08 to 31%, which adversely impacts GDP growth trends.
Domestic debt as percentage of GDP, which was 73.16%, is not significantly lower at 67.1% in 2011-12. Further, the shortterm external debt as a percentage of GDP is 22% compared with 10% in 1991. Inflation, while lower than 1991-92, has been consistently high over the past two years and in 2010-11, it was at 9.6%, uncomfortably close to the double-digit mark. This limits the flexibility of central bankers to ease liquidity, lower the cost of borrowing and make greenfield investments attractive.
Tax buoyancies have suffered due to decline in growth rates. Both subsidy bills and overall expenditure remain unsustainable, contributing to the stubborn fiscal deficit. The rapid economic growth experienced in recent years has multiplied the consumption of energy-intensive fossil fuel manifold. Crude prices have risen sharply and dependence on imported crude remains at stubborn 80%.
Second, the international economic situation has deteriorated sharply. In 1991, major economies of the world were growing rapidly and the international situation was benign and favourable. India was a new kid on the block and the world was ready to help India in its immediate crisis and encourage measures that could put it on a high-growth trajectory. Today, the situation is just the opposite. America's recovery is tentative and Europe is in deep crisis.
Recent policy changes, tardy reforms and governance deficit have deeply dented investor confidence. Both the exogenous and endogenous circumstances have worsened compared with 1991. We have frittered away many opportunities, postponed easier decisions and impaired our regulatory regime at a time when global capital is scarce. Third, in 1991 India was largely a closed economy.
Trade was highly regulated, tariff was high and quantitative restrictions had insulated the domestic economy from international changes. Trade as percentage of GDP was just 14% compared with 41.8% in 2011-12. Indian economy has integrated with the world more substantially and increased its vulnerability to exogenous changes.
2012 is not 1991, India can't live in self-denial
By: NK Singh
When I walked into the room of finance minister Manmohan Singh shortly after June 21, 1991, to congratulate him, he told me that "we will change India". Although I was a point-man dealing with the complex negotiations with the IMF and the World Bank, I had no inkling of the far-reaching changes to be unravelled in the budget presented to Parliament on July 24, 1991.
Our economic landscape has changed permanently. Comparing the present economic malaise with 1991 may be exaggerated. Foreign exchange reserves were less than $1 billion in June 1991, adequate to cover two weeks of import, compared with $290 billion today, adequate to cover a period of seven months. Average GDP growth rate in 1991-92 (at 1999-2000 prices) was 1.3% compared with the average of the last five years at 7.95%.
The economic infrastructure is far more diversified, domestic savings rate -which impacts investment-gearing ratio at current prices - improved from about 20% of GDP to 31.6% last year and FDI inflows, which were a modest $500 million then, have touched $42 billion.
Indian corporates are healthier and are seeking meaningful global investment opportunities, including some high-profile strategic investments. Given our young population with unsaturated consumption as a driver of growth, the India opportunity and growth story is one of the most notable successes of the last decade.
So, are comparisons with 1991 totally misplaced? Notwithstanding many inherent strengths, some of which have been mentioned above, there are four significant vulnerabilities that prompt analysts to seek such comparisons. First and foremost, the macroeconomic vulnerability. The fiscal deficit, which was 5.39% in 1991, is 6.9% in 2011-12. Current account deficit, which was 3% then, was close to 4.3% in March this year. Domestic savings rate have come down sharply from 36.9% in 2007-08 to 31%, which adversely impacts GDP growth trends.
Domestic debt as percentage of GDP, which was 73.16%, is not significantly lower at 67.1% in 2011-12. Further, the shortterm external debt as a percentage of GDP is 22% compared with 10% in 1991. Inflation, while lower than 1991-92, has been consistently high over the past two years and in 2010-11, it was at 9.6%, uncomfortably close to the double-digit mark. This limits the flexibility of central bankers to ease liquidity, lower the cost of borrowing and make greenfield investments attractive.
Tax buoyancies have suffered due to decline in growth rates. Both subsidy bills and overall expenditure remain unsustainable, contributing to the stubborn fiscal deficit. The rapid economic growth experienced in recent years has multiplied the consumption of energy-intensive fossil fuel manifold. Crude prices have risen sharply and dependence on imported crude remains at stubborn 80%.
Second, the international economic situation has deteriorated sharply. In 1991, major economies of the world were growing rapidly and the international situation was benign and favourable. India was a new kid on the block and the world was ready to help India in its immediate crisis and encourage measures that could put it on a high-growth trajectory. Today, the situation is just the opposite. America's recovery is tentative and Europe is in deep crisis.
Recent policy changes, tardy reforms and governance deficit have deeply dented investor confidence. Both the exogenous and endogenous circumstances have worsened compared with 1991. We have frittered away many opportunities, postponed easier decisions and impaired our regulatory regime at a time when global capital is scarce. Third, in 1991 India was largely a closed economy.
Trade was highly regulated, tariff was high and quantitative restrictions had insulated the domestic economy from international changes. Trade as percentage of GDP was just 14% compared with 41.8% in 2011-12. Indian economy has integrated with the world more substantially and increased its vulnerability to exogenous changes.
Ignited Mind
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Source: PM Manmohan Singh's twitter account
Götterdämmerung
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Okay....agreed
But the question is how will anyone enforce all these descisions??
the govt is blackmailed by her allies, and the opposition is divided in factions...........
We will have to wait till 2014 most probably when the next general elections will take place...........maybe then the situation will improve...
That's probably one of the reasons why our press never really touched you. We even praised you when you do all the wrong things. You became drunk from our accolades and validations of being the biggest democracy, soft power, strong service industry (that only employs a few millions) and what not.
Ignited Mind
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Sonic_boom
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Pakistan = Somalia on steroids then?
Pakistan = Somalia minus steroids would be more appropriate.
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