karan.1970
BANNED
- Joined
- Jan 3, 2010
- Messages
- 14,781
- Reaction score
- -20
- Country
- Location
India runs huge trade and budget deficits and therefore heavily dependent on foreign inflows of loans, FDI and FII to drive its economic growth and to meet its debt obligations....not very different from Greece and other nations depending on foreign inflows. And we all know how quickly Greek economy went from being healthy to being very sick....and how many Western economies in the twin-deficit club are also suffering now.
Haq's Musings: Soaring Chinese Imports and Twin Deficits Worry India
------------
Since 2007–08, the fiscal deficit has increased to around 6.5 to 7 per cent of India’s GDP, subsequently leading to a combined federal and state deficit of over 10 per cent of GDP in 2009–10. The actual numbers are higher, by at least 1 per cent, as some items were kept off the balance sheet.
India
There is a concept of external Debt to Reserves ratio. Very similar to Debt to Equity ratio of companies.
India
External debt = 308 billion USD
Forex and gold = 317 billion USD
Pakistan
External debt = 60 billion USD
Forex and gold = 13 billion USD
GreeceU]
External debt = 570 billion USD
Forex and gold = 8 billion USD
To me, Pakistan seems closer to Greece than INdia... And the S&P credit score (for whatever its worth) says the same