India to invest $1.46 trillion to lift virus-hit economy

[Chhatrapati]

RBI is already monetizing India's deficits.

Not with unusually printing money to cover for the deficit. But through rates.

 

[Prince Kassad]

Am sure China will lend India $1.46 trillion.

we dont need to but you should worry about your own project since this iran deal going through, most of the oil will pass through that corridor, so start worrying about your cpec. Since this iran deal, now what your left is with minimal amount business and big fat loan book

 

[casual]

Not with unusually printing money to cover for the deficit. But through rates.

and how does that work? you don't magically get money when you change rates. India's economy is in the gutter so the money is definitely not coming from taxes. Forex reserves only around a third of 1.46 trillion so ditto there.

 

[Adonis]

and how does that work? you don't magically get money when you change rates. India's economy is in the gutter so the money is definitely not coming from taxes. Forex reserves only around a third of 1.46 trillion so ditto there.

May be through cutting on imports, increasing FDI (even my company in Aus is now investing in India), Increasing industrial output and consumption within India etc etc.....

Anyways, whether they will be able to do it or not...remains to be seen...but for sure status of China as world's production house will change....

 

[casual]

May be through cutting on imports, increasing FDI (even my company in Aus is now investing in India), Increasing industrial output and consumption within India etc etc.....

Anyways, whether they will be able to do it or not...remains to be seen...but for sure status of China as world's production house will change....

you don't magically generate money when you cut in imports. Increasing industrial output and consumption is the goal of this package. However, industrial output and consumption is definitely not increasing but falling hard as Indian GDP is projected to decrease by 4.5%. Increasing FDI would mean the money is borrowed.

 

[CrazyZ]

May be through cutting on imports, increasing FDI (even my company in Aus is now investing in India), Increasing industrial output and consumption within India etc etc.....

Anyways, whether they will be able to do it or not...remains to be seen...but for sure status of China as world's production house will change....

Modern monetary theory is all the rage now. A number of emerging markets are also embracing money printing to solve their deficits (India included). Their will be a race to debase all over the world.

Western investors flush with QE derived gains prefer tech investments, not infrastructure. The vast majority of this proposed infrastructure spending will be funded through money printing. Japan this in the 2000's.

 

[Vanamali]

Where the vaccine come from ? Are those three coming from Indian own research without trying to get some license to produce vaccine from other countries who have already undergone phase three trial like in Western countries and China ?

Without being rehotic, Indian Medical policies are far welfare oriented than most countries, I will not doubt mechanism which approves Vaccination..

 

[Vanamali]

$1.46 trillion thats 50% of india's gdp, i hope he borrows that much amount and make indian ruppee worthless.

You hope... Please lend to India to make Indian Rupee worthless..

 

[Shantanu_Left]

another jumla baazi f surrender modi

India ki currency ka nam change karega Rupee say Dollar.

Phr $1.46 trillion print karega.

Ho gaya $1.46 trillion ka investment.

Ye Modi Muhammad-bin-Tughluq say bhi khatarnak hai.

 

[truthseeker2010]

You hope... Please lend to India to make Indian Rupee worthless..

you didn't get the point, printing cash does inflation, and with the amount of trillion, inflation will be uncontrolled.

 

[ARMalik]

Yea sure .... 1.46 Trillion.

 

[Chhatrapati]

and how does that work? you don't magically get money when you change rates. India's economy is in the gutter so the money is definitely not coming from taxes. Forex reserves only around a third of 1.46 trillion so ditto there.

Yeah, I wish I could explain it to you. But, when I read your forex 1/3 wah! I'd rather let you read some more about the basic functions of Forex, and repo-reverse repo rates.

 

[Type59]

Just announcements after announcements. Looks good on paper but will it happen.

 

[Pandora]

He made grand comments on Covid package as well but no one saw ever a dime of it being spent. India will need to take some hefty foreign loans to lift up their economy which means more inflation. Modi is just trying to prepare ground work to drop inflation bomb on Indians.