Why should the RMB be included in the SDR basket?

[Beidou2020]

Get your facts right first. India's debt to GDP ratio is 120%. China's debt to GDP ratio is 270%. We have twin deficits but that is very small. China is loosening to increase growth, But people no longer have confidence in China so they are not investing. Excess liquidity is going to stock markets and creating a bubble.

The way you are arguing seems like you have learned from Taliban School of Economics.


Mumbai will never be like Shanghai. We are a free country.

Chinese debt is 40% while Indian debt is over 100%. Indian debt is used for consumption purposes with no future return and Chinese debt is used for investment purposes with future returns.

Indian twins deficits are MASSSIVE. Indian current account deficit is close to 8% and Indian budget deficit is 6%.

Yea investors don't have confidence in China. That's why Chinese FDI was $128 billion and Indian FDI was $35 billion last year

Chinese stock market is increasing as the capital account was liberalised by the Hong Kong-Shanghai stock connect which boosted the confidence in Chinese stocks.

You are clueless on economics kid

 

[hellraider]

Your economy seems much more state-controlled and hence inflexible. Other than the obvious regulations, your economy suffers from unwritten rules of nepotism and corruption. Your political environment seems to be conducive to this inefficiency.



Wrong, since 2014, China has been the largest recipient of FDI as well as the largest foreign investor. The only thing that leaves China is low-end manufacturing, which may or may not go to India. Private business and investment in China is in fact booming.

India, on the other hand, is the same inefficient and corrupt economy. Even Modi's supporters in India do not buy the cooked numbers and PR stunts.

Thats your opinion not fact. Companies in India are more profitable than in most countries. There is a post going on in this forum that quotes a report that says India is most profitable destination for investments.

 

[Beidou2020]

Thats your opinion not fact. Companies in India are more profitable than in most countries. There is a post going on in this forum that quotes a report that says India is most profitable destination for investments.

Then India should attract far more FDI than China but global investors aren't buying into the Hindu propaganda machine

 

[TaiShang]

Well, you need to find India's standing on this list, then:

A.T. Kearney | GBPC | 2015 FDI Confidence Index

 

[hellraider]

Chinese debt is 40% while Indian debt is over 100%. Indian debt is used for consumption purposes with no future return and Chinese debt is used for investment purposes with future returns.

Indian twins deficits are MASSSIVE. Indian current account deficit is close to 8% and Indian budget deficit is 6%.

Yea investors don't have confidence in China. That's why Chinese FDI was $128 billion and Indian FDI was $35 billion last year

Chinese stock market is increasing as the capital account was liberalised by the Hong Kong-Shanghai stock connect which boosted the confidence in Chinese stocks.

You are clueless on economics kid

Government debt in China is 40% but total debt is 270%. Government debt in India is 55% & total debt is 120%. Overall India has a better balance sheet than China.

India's current account deficit is 1% of GDP now and next year on wards we will have current account surplus. India's budget deficit is 4% with 7.5% growth rate in economy. So it is very healthy.

As percentage of GDP FII investments is greater in India than in China.

I already told you that you have learned from Taliban School of Economics. Check facts before commenting.

 

[xunzi]

In this jungle world, you have to earn it. You don't ask or beg to be in it. India like to beg to be in before actually trying to earn it.

 

[ahtan_china]

Just for reference

 

[xunzi]

Being in SDR basket does not matter. What matters id investors have confidence in your economy which is true for India.


Being in SDR basket in irrelevant. Foreign investors has confidence in Indian economy & thats what matters.

Your stock market is non-existent. your FDI is tiny. Yeah a lot of confidence. LOL

 

[xunzi]

FDI & FII flows in India as percentage of GDP is higher for India than China.

LOL that is like saying you have a higher growth rate but the total GDP accumulation per year is 1/10 of us. You just start to industrializing so there are a lot opportunities for foreign investors to invest. Think of it this way. If you are an investor and you saw a market with lot of opportunity to make a quick buck, would you invest or not? Fact is a lot of these foreign companies are looking to utilize your cheap labor and in the early stage of industrializing to make a quick buck or two. India reminds us of 1980s when we first began to open up for investment. Long-term investment is what the real value is. Right now, the US and China are the two best place for long-term investment thanks to the diversity of industries, advance infrastructure, skill labors, sophisticated consumer.

 

[TaiShang]

India does attracts more FDI as percentage of GDP than China.

Because India's GDP is much smaller. I am not sure this is a good thing. Too much dependence on external sources. Where does that money goes is also another matter. Do they go to real sector? You have to find out.

This is just some index make by some consultancy. Companies do not take investment decisions by seeing these rankings.

In real total FDI, India is well behind China, as well. This is despite the fact that India is pursuing investment at all cost and is willing to be a manufacturing ground for the world. Kind of China 30 years back.

Being in SDR basket does not matter. What matters id investors have confidence in your economy which is true for India.

SDR is important if you wish to reinforce the internationalization of your currency. But, without strong economic fundamental, it means little, apparently. Japanese Yen is in the basket, for example.

Government debt in China is 40% but total debt is 270%. Government debt in India is 55% & total debt is 120%. Overall India has a better balance sheet than China.

Yet most of the debt is public debt incurred due to infrastructure investment which pays off slowly and often through positive externalities. It is a debt that China owes itself. With 4trillion USD foreign reserve, the debt can be easily backed.

 

[Beidou2020]

Government debt in China is 40% but total debt is 270%. Government debt in India is 55% & total debt is 120%. Overall India has a better balance sheet than China.

India's current account deficit is 1% of GDP now and next year on wards we will have current account surplus. India's budget deficit is 4% with 7.5% growth rate in economy. So it is very healthy.

As percentage of GDP FII investments is greater in India than in China.

I already told you that you have learned from Taliban School of Economics. Check facts before commenting.

India government debt alone is over 100% and if you include all debt, Indian debt to GDP is over 300%.
Indian growth this year will be below 5% (excluding Vedic math GDP) while inflation is above 10% which shows India is close to stagflation and with the massive deficits and overall debt burden, the Indian growth story is imploding.

India is a net debtor while China is a net creditor that loans money to the world including the US. Indian current account deficit is 8% while budget deficit is 6%. This is already proving to be unsustainable as we can see with the massive collapse in the Rupee and the amount of money forex reserves RBI has to sell while lying about its forex reserves to pretend that its not intervening

 

[xunzi]

Yes thats true. But India is a free country as compared to China so we will sustain high growth rates for longer time than China.

Wack. Too much prediction without substance. Typical Indian response. LOL

I tell you what. Had it not been for tit for tat response in our rivalry with the US, both of our country FDI would account for over 50% of the World FDI total.

 

[Beidou2020]

India does attracts more FDI as percentage of GDP than China.


This is just some index make by some consultancy. Companies do not take investment decisions by seeing these rankings.


Being in SDR basket does not matter. What matters id investors have confidence in your economy which is true for India.


Being in SDR basket in irrelevant. Foreign investors has confidence in Indian economy & thats what matters.

China FDI in 2014: $128 billion
India FDI in 2014: $35 billion

Ratio of 3.5 to 1

 

[xunzi]

I feel like our Indian friends need to humble themselves here. You are far from competing FDI with the best of the world.

 

[Beidou2020]

India has made a good start & this is going to sustain for long time in future. So wait for few years and we will close the gap with China & even surpass due to good demographics of our country.

SDR does not matter. Swiss Franc is not included but it has lot of demand. There is no demand for Euro even if it is part of SDR.

You can repay your debt by foreign reserves but still it will create a massive shock that will take China years to recover from.

Chinese forex reserves: $3.8 TRILLION
Indian forex reserves: $300 billion

China is now the 5th most used currency payments, while Indian Rupee is irrelevant
Over 60 central banks hold the RMB as part of their forex reserves while Rupee is irrelevant