Finance, Forex and Investments

What is our national debt?

Look at some interesting facts, these are the percentage of borrowing over national GDP, most of these are estimates for 2009 as per CIA fact book: United States 52.90% United Kingdom 68.50% Russia 6.90% France 79.70% Brazil 46.80% Singapore 117.60% Pakistan 45.30% India 59.60% https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html The numbers that surprised me are, Pakistan Vs. India. And India Vs. many so called developed nations. I intentionally excluded China because of the currency manipulation by the government. There numbers are reliable. Before anyone jumps to any conclusion about Indian debts, I would like to mentions something, we are still safe because India govt owes to its own people unlike United States, Greece or Iceland or any other country. Most of this debt is what Indian government owes to Indian people in form of government bonds, deposits, equities etc. India govt have full control in their debt. Americans at present have no problem them because they hold their debt in USD. US Govt can print USD and wash off their hand off or devalue the dollar. India has its own massive economy which consumes everything it produces unlike Chinese where they have to look for other countries to sell their products. India will be the super power of the future. No doubt. I'm waiting for that day for lungi dance. And God willing I will see that day in my life. And this is not a political statement, but this statement comes right from my heart. MR, Lungi dance means Punjabi dance. This term is often used by one of my friend who is a Sikh. This is just a term used a synonym used by me as "Happy dance" nothing more than that. I am adding following details from one of my YA friend who sent me email on my question: Dude....good we will become superpower in the next decade ,it is general prediction by many experts . Public debt can nevr become a serious problem for the governments because we can repay it by printing currency (if required) or we can convert them into low interest bonds or we can pay them from sinking fund http://www.business-standard.com/india/news/roadmap-in-6-months-to-cut-public-debt-pranab/19/16/87106/on ...the problem for us is external debt which we have to pay from foreign exchange reserves...I think our external debt is around 250 billion dollars. http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=20940 our forex reserves are around 270 billion dollars RW, thanks for letting us know that you are not big shot into economics... And I agree with you. But you can read articles on internet to understand these simple facts so that you don't fun of you on public forum. Think about it in your free time. Sudan, same comment as RSS warrior.

Public Comments

1. As your country becomes more important please be wise. Oh, and you're democratic to a fault. Friends from India tell me the nightmare that is attemtped development over there.
2. Well!!!!!!!!!!!!!! You are very much correct!!!!!! We are far safe in this aspect... We will surely be a debt less nation in due course!! Here is a fact that might (even) shock you!!! Once, the Great Britain was the greatest empire over which the Sun never Sets!! But, how did the nation become small now? Believe or not, it was due to the debt!! Though Britain and the Empire emerged victorious from the Second World War, the effects of the conflict were profound, both at home and abroad. Much of Europe, a continent that had dominated the world for several centuries, was now in ruins, and host to the armies of the United States and the Soviet Union, to whom the balance of global power had now shifted. Britain was left virtually bankrupt, with insolvency only averted in 1946 after the negotiation of a $3.5 billion loan from the United States, the last instalment of which was repaid in 2006. At the same time, anti-colonial movements were on the rise in the colonies of European nations. The situation was complicated further by the increasing Cold War rivalry of the United States and the Soviet Union, both nations opposed to the European colonialism of old, though American anti-Communism prevailed over anti-imperialism, which led the US to support the continued existence of the British Empire. The "wind of change" ultimately meant that the British Empire's days were numbered, and on the whole, Britain adopted a policy of peaceful disengagement from its colonies once stable, non-Communist governments were available to transfer power to, in contrast to other European powers like France or Portugal, which waged costly and ultimately unsuccessful wars to keep their empires intact. Between 1945 and 1965, the number of people under British rule outside the UK itself fell from 700 million to five million, three million of whom were in Hong Kong. That was the reason behind the decolonisation of many countries. It was not only the Indian subcontinent (India, Pakistan, Bangaldesh and Srilanka) that was decolonised. It included Africa and many Asian Countries!!
3. your question is very very excellent, but i have no answer. Anyway, i signed in the attendance register. please clarify this ''i am waiting for that day for lungi dance'' what is lungi dance ?
4. It is important, though, not to be too mechanistic. There is no magic associated with a given debt : GDP ratio. The important issue is one of government credibility. India has a deserved reputation for honouring its debts. This leads to a greater willingness by its population to hold government liabilities voluntarily. The problem is that it is not easy to forecast when and where the limit will be reached, nor what the end -- game will look like. Public debt has triggered several of the financial crises in large emerging markets over the past decade. Indeed, these crises have been dubbed 'capital account crises' rather than the more traditional concern of excessive domestic spending. Public debt was not a major factor in the Asian crises of the late 1990s, but was a feature in the crises in Argentina, Brazil, Mexico, Russia and Turkey. Acknowledging that its growing debt -that stands at more than 80% of GDP- can threaten India's economic growth, government is set to cut it by slowing the growth of spending, increasing revenues from taxes and selling pieces of state owned firms. Still govt. faces a delicate task: It needs to raise more money for social services and infrastructure but doing so can add to financial strains on the country's many poor people.
5. first of all : CIA is a "faceless book"; do not believe it. past national debts still affecting india are: 'mohandoss&jawaharlal' and their congres party present national debt are: congress party, Foreign born Indian antanio maino, sikandi m.mohan, karunainithi etc., future debts: rahul, his yet to be conkubine/wife, priyanka, robert etc.,
6. i m not a big shot into economics... but even my three yr old cousin sister can say tat a country having 370 million below poverty line<ROUGHLY 35%> isnt economically safe and sound! http://www.hindustantimes.com/special-news-report/News-Feed/Bill-may-offer-far-less-than-what-poor-need/Article1-522532.aspx
7. Do you think with more than 50% population which survive on just Rs 50 to 70 daily income can make the country a super power in next 10 year ? You don't know the borrowing money goes to certain pockets not to common man's development in India,than why you are portraying sweet dreams here ,just like congress always have a slogan for all "garib" of India in different form but that "Garib" is still Garib after so many decades in congress regime. If you compere the corruption ratio with these figures than you can understand the real economy of India.We presently have very high price for all commodities and you are suggesting here for internal debt by more printing the currency,you really understand the effect of this ?We will go in revers direction and will make more and more people under poverty line. External debt ,just compare it with black money in swish bank than we can understand where the all borrowing money in real goes,which never makes a country as economic power. Have a sweet dream or misguide all by a sweet dream,congress is expert in this game also.'AAm AAdmi never get a quality life in under congress regime. @MS .. Fact is fact so accept the fact !