India to Borrow and Spend More in 2010-2011

[ssheppard]

I am not sure what you are arguing. We all know and acknowledge that Pakistan receives forieign aid and loans.

On the other hand, Indians quietly seek and accept massive foreign aid and loans and many, like the Indian posters on this forum, deny it.

Please learn to publicly acknowledge the truth, and have the decency to be grateful to those who help you.

So thats pissing you off....

India receiving money by so called aid and investment without any concerns....and Pakistan being forced to acknowledge each and every penny given in aid.

Buddy... India is an investment destination for multiple corporations from global prospective and all that aid that flies in makes sure that the Corporations from the friend countries get a access to the market that would be created in India with help of development done using that so called aid....so thats an investment..to develop a market for their own good....Now does Pakistan offer that opportunity....answer is .....NO.

As for loans...or so called soft loans....are given because India has a good record of paying of the loans on time...and has a fair share in IMF and World bank......unlike Pakistan which had to be bailed out ....and given money to service international loans.

So acknowledging publicly is minimum Pakistan can do to serve their donors.

 

[desiman]

I dont know very much about economy, but what ever you are a economy master or doctor, you cant prediacated future. If your saying about "future predictions are made on the basis of solid facts and modeling the growth on an exponential basis." is right, then what about this article,said by a economy nobel old man called ROBERT FOGEL.
Why China's Economy Will Grow to $123 Trillion by 2040 - By Robert Fogel | Foreign Policy
So, which one is more believable? I think all the article tried to predicate a country's future is BS.

I was talking about the research paper not random articles. University research is not child's play. All paper's undergo a lot of scrutiny before they are published by the university.

 

[RiazHaq]

Buddy... India is an investment destination for multiple corporations from global prospective and all that aid that flies in makes sure that the Corporations from the friend countries get a access to the market that would be created in India with help of development done using that so called aid....so thats an investment..to develop a market for their own good....Now does Pakistan offer that opportunity....answer is .....NO.

As for loans...or so called soft loans....are given because India has a good record of paying of the loans on time...and has a fair share in IMF and World bank......unlike Pakistan which had to be bailed out ....and given money to service international loans.

Pakistan was an FDI success story until 2007-2008. Prior to that, India’s cumulative stock of FDI at 6 per cent of GDP at the end of 2005 was less than 9 per cent for Pakistan, 14 per cent for China, and 61 per cent for Vietnam.

Talking about foreign direct investment (FDI) in emerging economies, former US Federal Reserve Chief Alan Greenspan says: “But clearly the Licence Raj (in India) has discouraged foreign direct investment. India received $7 billion in FDI in 2005, a sum dwarfed by China’s $72 billion. India’s cumulative stock of FDI at 6 per cent of GDP at the end of 2005 compares with 9 per cent for Pakistan, 14 per cent for China, and 61 per cent for Vietnam. The reason FDI has lagged badly in India is perhaps no better illustrated than by India’s unwillingness to fully embrace market forces. That is all too evident in India’s often statist response to economic problems. Faced with rising food inflation in early 2007, the response was not to allow rising prices to prompt an increase in supply, but to ban wheat exports for the rest of the year and suspend futures trading to ‘curb speculation’ — the very market forces that the Indian economy needs to break the stranglehold of bureaucracy.” (p. 322 of "The Age of Turbulence" by Alan Greenspan.)

And the soft loans ( from donors countries and World Bank) are given to the poor nations who need because they have low credit ratings, not those who have high credit ratings and can obtain such loans at low rates in the markets.

In spite of all your hype, India still has a low credit rating (BBB-minus) ...worse than Greece's (BBB+/A-2) which is considered in trouble.

 

[chinapakistan]

I was talking about the research paper not random articles. University research is not child's play. All paper's undergo a lot of scrutiny before they are published by the university.

That is ROBERT FOGEL's present based on research, and I think you are not talking about ROBERT FOGEL research is child's play who gained the economy nobel prize. All paper's undergo a lot of scrutiny before they are published whether it is from university or a company.

 

[kumar_V1.0]

Pakistan was an FDI success story until 2007-2008. Prior to that, India’s cumulative stock of FDI at 6 per cent of GDP at the end of 2005 was less than 9 per cent for Pakistan, 14 per cent for China, and 61 per cent for Vietnam.

Talking about foreign direct investment (FDI) in emerging economies, former US Federal Reserve Chief Alan Greenspan says: “But clearly the Licence Raj (in India) has discouraged foreign direct investment. India received $7 billion in FDI in 2005, a sum dwarfed by China’s $72 billion. India’s cumulative stock of FDI at 6 per cent of GDP at the end of 2005 compares with 9 per cent for Pakistan, 14 per cent for China, and 61 per cent for Vietnam. The reason FDI has lagged badly in India is perhaps no better illustrated than by India’s unwillingness to fully embrace market forces. That is all too evident in India’s often statist response to economic problems. Faced with rising food inflation in early 2007, the response was not to allow rising prices to prompt an increase in supply, but to ban wheat exports for the rest of the year and suspend futures trading to ‘curb speculation’ — the very market forces that the Indian economy needs to break the stranglehold of bureaucracy.” (p. 322 of "The Age of Turbulence" by Alan Greenspan.)

And the soft loans ( from donors countries and World Bank) are given to the poor nations who need because they have low credit ratings, not those who have high credit ratings and can obtain such loans at low rates in the markets.

In spite of all your hype, India still has a low credit rating (BBB-minus) ...worse than Greece's (BBB+/A-2) which is considered in trouble.

Ok cool, but what about a country which receives 90% of assistance in form of Grant? Sounds familiar??

 

[kumar_V1.0]

Pakistan was an FDI success story until 2007-2008. Prior to that, India’s cumulative stock of FDI at 6 per cent of GDP at the end of 2005 was less than 9 per cent for Pakistan, 14 per cent for China, and 61 per cent for Vietnam.

Talking about foreign direct investment (FDI) in emerging economies, former US Federal Reserve Chief Alan Greenspan says: “But clearly the Licence Raj (in India) has discouraged foreign direct investment. India received $7 billion in FDI in 2005, a sum dwarfed by China’s $72 billion. India’s cumulative stock of FDI at 6 per cent of GDP at the end of 2005 compares with 9 per cent for Pakistan, 14 per cent for China, and 61 per cent for Vietnam. The reason FDI has lagged badly in India is perhaps no better illustrated than by India’s unwillingness to fully embrace market forces. That is all too evident in India’s often statist response to economic problems. Faced with rising food inflation in early 2007, the response was not to allow rising prices to prompt an increase in supply, but to ban wheat exports for the rest of the year and suspend futures trading to ‘curb speculation’ — the very market forces that the Indian economy needs to break the stranglehold of bureaucracy.” (p. 322 of "The Age of Turbulence" by Alan Greenspan.)

And the soft loans ( from donors countries and World Bank) are given to the poor nations who need because they have low credit ratings, not those who have high credit ratings and can obtain such loans at low rates in the markets.

In spite of all your hype, India still has a low credit rating (BBB-minus) ...worse than Greece's (BBB+/A-2) which is considered in trouble.

Moody's may raise India rating
23 Feb 2010, 0125 hrs IST, Bloomberg

Save Print EMail Share Comment Text:
NEW DELHI: India's credit rating may be raised from junk if finance minister Pranab Mukherjee provides a comprehensive plan to roll back fiscal
stimulus and cut the budget deficit this week, Moody’s Investors Service said.

“If we think the exit path is well articulated and well executed, the local currency rating could be upgraded,” Aninda Mitra, a Singapore-based sovereign analyst at Moody’s, said in a telephone interview on February 19. India’s long-term local currency debt is placed at Ba2 by Moody’s, two levels below the investment grade and at par with Armenia and Turkey.

Mr Mukherjee has an opportunity to narrow the budget shortfall as accelerating economic growth boosts tax revenue and a stronger political mandate after last year’s elections paves the way to resume asset sales. Rating changes have less impact on India than other countries like Greece, which borrow more from abroad. India’s foreign borrowings make up only about 4% of government debt compared with 83% for Greece, according to Citigroup.

“India has lived with a budget deficit for so long, and with a high growth rate you can run a deficit,” said Andrew Michael Spence, a Nobel prize-winning economist and professor emeritus at Stanford University’s Graduate School of Business. “You don’t want the credit rating to go too low. It’s more signalling rather than anything else.”

India’s budget deficit may narrow to 5.5% of gross domestic product in the financial year starting April 1 from 6.8% of GDP in the previous year, Chakravarthy Rangarajan, Prime Minister Manmohan Singh’s top economic adviser, said on February 19. Mr Mukherjee is scheduled to unveil the Budget in Parliament in New Delhi on February 26 at 11 am.

Stocks snapped a two-day decline while the yield on India’s benchmark 10-year note fell the most in more than four weeks after Moody’s comment. The rupee gained the most since February 15. India’s Sensitive Index rose 1.1% to 16,369 on the Bombay Stock Exchange and the rupee appreciated 0.3% to 46.14 per dollar. Bond yields fell four basis points to 7.84% as of 1:24 p.m. in Mumbai.

----------------
Now its clear you are a serious troll and person who twists facts to suit his ego.

 

[RiazHaq]

Removal of food and fuel subsidies in India's new budget are likely to make the already bad situation worse for the poor who account for almost half of India's population. .

New Delhi, March 4 (IANS) India’s annual food inflation rose slightly to 17.87 percent for the week ended Feb 20 from 17.58 percent the week before, though the government had said that prices had started easing and would fall further following a good winter crop.
According to official data released Thursday, prices of essential items continued to move up, with pulses dearer by 35.23 percent, potatoes by 27.69 percent, vegetables by 15.45 percent and wheat by 14 percent.

The limited data on wholesale price index released by the commerce and industry ministry

also showed a rise in the index for primary articles by 15 percent and that for fuel, power, light and lubricants going up 9.59 percent.

India’s annual rate of inflation, based on the wholesale prices index, had risen to 8.56 percent in January from 7.31 percent in the previous month, primarily due to galloping food prices.

After the government hiked auto fuel prices, it is feared that food prices would rise further in the coming months.

Both houses of parliament Wednesday witnessed stormy scenes as opposition members demanded a rollback of petrol and diesel price hikes, saying they would have a cascading effect on the already high prices of essential commodities.

The price rise of some essential food items over the 52-week period:

- Pulses: 35.23 percent

- Potatoes: 27.69 percent

- Vegetables: 15.45 percent

- Milk: 15.28 percent

- Wheat: 14 percent

- Cereals: 11.58 percent

- Onions: 11.14 percent

- Fruits: 10.41 percent

- Rice: 9.62 percent

More at : India’s food inflation rises marginally (Lead) India’s food inflation rises marginally (Lead)

 

[desiman]

Pakistan was an FDI success story until 2007-2008. Prior to that, India’s cumulative stock of FDI at 6 per cent of GDP at the end of 2005 was less than 9 per cent for Pakistan, 14 per cent for China, and 61 per cent for Vietnam.

Talking about foreign direct investment (FDI) in emerging economies, former US Federal Reserve Chief Alan Greenspan says: “But clearly the Licence Raj (in India) has discouraged foreign direct investment. India received $7 billion in FDI in 2005, a sum dwarfed by China’s $72 billion. India’s cumulative stock of FDI at 6 per cent of GDP at the end of 2005 compares with 9 per cent for Pakistan, 14 per cent for China, and 61 per cent for Vietnam. The reason FDI has lagged badly in India is perhaps no better illustrated than by India’s unwillingness to fully embrace market forces. That is all too evident in India’s often statist response to economic problems. Faced with rising food inflation in early 2007, the response was not to allow rising prices to prompt an increase in supply, but to ban wheat exports for the rest of the year and suspend futures trading to ‘curb speculation’ — the very market forces that the Indian economy needs to break the stranglehold of bureaucracy.” (p. 322 of "The Age of Turbulence" by Alan Greenspan.)

And the soft loans ( from donors countries and World Bank) are given to the poor nations who need because they have low credit ratings, not those who have high credit ratings and can obtain such loans at low rates in the markets.

In spite of all your hype, India still has a low credit rating (BBB-minus) ...worse than Greece's (BBB+/A-2) which is considered in trouble.

Its amazing how you play with words by quoting certain parts of a larger report. Smart but not smart enough -

India credit rating may be raised: Moody | Top News

 

[RiazHaq]

Moody's may raise India rating
23 Feb 2010, 0125 hrs IST, Bloomberg

Save Print EMail Share Comment Text:
NEW DELHI: India's credit rating may be raised from junk if finance minister Pranab Mukherjee provides a comprehensive plan to roll back fiscal
stimulus and cut the budget deficit this week, Moody’s Investors Service said.

“If we think the exit path is well articulated and well executed, the local currency rating could be upgraded,” Aninda Mitra, a Singapore-based sovereign analyst at Moody’s, said in a telephone interview on February 19. India’s long-term local currency debt is placed at Ba2 by Moody’s, two levels below the investment grade and at par with Armenia and Turkey.

Mr Mukherjee has an opportunity to narrow the budget shortfall as accelerating economic growth boosts tax revenue and a stronger political mandate after last year’s elections paves the way to resume asset sales. Rating changes have less impact on India than other countries like Greece, which borrow more from abroad. India’s foreign borrowings make up only about 4% of government debt compared with 83% for Greece, according to Citigroup.

“India has lived with a budget deficit for so long, and with a high growth rate you can run a deficit,” said Andrew Michael Spence, a Nobel prize-winning economist and professor emeritus at Stanford University’s Graduate School of Business. “You don’t want the credit rating to go too low. It’s more signalling rather than anything else.”

India’s budget deficit may narrow to 5.5% of gross domestic product in the financial year starting April 1 from 6.8% of GDP in the previous year, Chakravarthy Rangarajan, Prime Minister Manmohan Singh’s top economic adviser, said on February 19. Mr Mukherjee is scheduled to unveil the Budget in Parliament in New Delhi on February 26 at 11 am.

Stocks snapped a two-day decline while the yield on India’s benchmark 10-year note fell the most in more than four weeks after Moody’s comment. The rupee gained the most since February 15. India’s Sensitive Index rose 1.1% to 16,369 on the Bombay Stock Exchange and the rupee appreciated 0.3% to 46.14 per dollar. Bond yields fell four basis points to 7.84% as of 1:24 p.m. in Mumbai.

----------------
Now its clear you are a serious troll and person who twists facts to suit his ego.

This cut-paste confirms what I said: India has a low, below investment grade credit rating, that forces it to seek soft loans from donor nations and IFIs, generally considered as AID. The rest is just a long explanation for why it's ok.

 

[desiman]

This cut-paste confirms what I said: India has a low, below investment grade credit rating, that forces it to seek soft loans from donor nations and IFIs, generally considered as AID. The rest is just a long explanation for why it's ok.

I had my doubts on your credentials and this proves that you know nothing at all about economics. Please go research such huge issues before you comment like an idiot. You bits and pieces knowledge is as good as a grade 9 kid.

 

[desiman]

and if you have any brains please dont quote anything from Alan Greenspan, even a fool knows that his decisions are one of the most major cause of USA's decline.

 

[kumar_V1.0]

This cut-paste confirms what I said: India has a low, below investment grade credit rating, that forces it to seek soft loans from donor nations and IFIs, generally considered as AID. The rest is just a long explanation for why it's ok.

can you read or you r blinded by hate to ignore what you dont want to read. Just read below para again, Its you who compared India with Greece.

Rating changes have less impact on India than other countries like Greece, which borrow more from abroad. India’s foreign borrowings make up only about 4% of government debt compared with 83% for Greece, according to Citigroup.

 

[karan.1970]

In spite of all your hype, India still has a low credit rating (BBB-minus) ...worse than Greece's (BBB+/A-2) which is considered in trouble.

Better than Pakistan's C+/B- .. Interesting that you left that out from the comparison

Also please check the forex reserve to External debt ratio of the Greece and Pakistan and compare it to India's and you will no why India will never default like the risk Greece is facing and Pakistan faced prior to the IMF bailout of 2009 Nov.

Remember, default is always towards external debt

 

[Gin ka Pakistan]

Better than Pakistan's C+/B- .. Interesting that you left that out from the comparison

Also please check the forex reserve to External debt ratio of the Greece and Pakistan and compare it to India's and you will no why India will never default like the risk Greece is facing and Pakistan faced prior to the IMF bailout of 2009 Nov.

Remember, default is always towards external debt

We had BB but Democracy came and .........

 

[karan.1970]

This cut-paste confirms what I said: India has a low, below investment grade credit rating, that forces it to seek soft loans from donor nations and IFIs, generally considered as AID. The rest is just a long explanation for why it's ok.

and Pakistan???? needs bailouts to stay solvent???