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.

 

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2 thoughts on “India Borrows from World Bank

  1. 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

    Like

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