india is going bust soon, its economy is as bad as the american one with it's debt. but in this case the indians have 230 million going hungry.
Again Debt
Indian Debt Characterstic
The Consolidated debt(Centre + State) level of India was at a concerning level of 78.8% of GDP at the end of March 2010(13th Finance commission).
However for determining vulnerability of Public Debt following criteria's are to be taken into account
1.Composition
2.Refinancing requirement
3.Investor Base
The attributes of central public Debt,which place it in a distinct class,making it less vulnerable are
1.The share of Sovereign public debt in total public debt was 10.8% at the end-september 2010.The
bulk of Debt was from
multilateral and bilateral and
FII investment in Government securities accounted for
less than 1% of total public debt.
2.India does
not access international capital market as a sovereign entity thus refinancing risk due to foreign commercial investors are absent.
3.Domestic Debt accounts for 89.2% of total government sovereign debt.Out of this 11.5% is in form of non-marketable categories like NSS.The remaining 77.7% are marketable securities with 73.2% in date securities(long term) and 4.3% in T-Bills.
4.In dated securities banks have 51.9%,Insurance companies(mainly LIC) 22%.Given the high SLR ratio requirement for banks and the fact that majority of Banks and Insurance companies remains in Public sector,refinancing risk is minimal at best.
5.Average maturity of GoI bonds is 10 yrs,making it less vulnerable to refinancing risk.
For poor
India's population =1.2 billion
Hungry poor = 230 million
now % of hungry poor = 19%