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India Borrows from World Bank

I was reading this news about india borrowing an additional $518 million from World Bank. Now my question is:
1. Eternal debt has already led to Pakistani currency being rated as a junk currency. Indian currency has a BB rating and any additional debt would only force Moody’s or S&P to further lower it.

2. India already has a huge forex reserve (251 USD) why does india not use it? Anyways that cash is lying idle and not earning as much interest.

If India wants to play a bigger part in the global economy, it should help World bank and other international agencies help countries suffering from stagflation, and not borrow from this pool.

 

street, Bengaluru South, Karnataka, India

2 replies on “India Borrows from World Bank”

well it is fear .a fear that there could be a speculator driven run.. nations are scared… look at russia, that helps the hoarding mentality,plus this nation has a history of such a mentality.

The situation with the kind of large spending is disastrous to our citizens, worse we have no bcd nexus and a big bond glut so much so that rbi is mimicking the fed, and doing omo to purchase debt and monetize it.
I thought the deficit was 10% overall worse it is 11.5%

The next fm will cringe before taking the job or he will do the ostrich like our PC , if he is a responsible man, and the legacy of MMS would be of a man that started when the fisc deficit was over ten and ended by taking it well over 10% of gdp

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