Wednesday, December 8, 2010
The Darkest Version of Indian Economy
A heavy amount of loans also show the actual picture of Indian economy.India has to pay $ 252 loans today. In this context she is the 5th biggest borrower of loans in the world. As the expenditure of the government is higher than the income so the affairs of government are running on internal and external loans. At present India is being extended loans by the agencies, but any time if she suffered from economic crisis the high mountain of loans will crush her. These loans equal to 80 % of GDP, while Pakistan's are 64 % of its GDP. The budget deficit of India is too high. During 2010, the National Indian budget shows expenditures as high as 11,087 bn rupees , while total income has to be 7,496 bn rupees, it means that Indian government budget deficit remained 3,620 bn rupees.The budget deficit is 6 % of GDP, while Pakistan's was 4.7 $ of GDP during the same period but it rose to 6 % due to natural calamity of floods. The inflation rate in India is as high as 11.5 %, so the food items are expensive.
The unjustified equilibrium of money is prominent in India. On one side there are hundreds of billionaires ans millionaires, while other side India has billions people who have to dig mountains of troubles daily for filling their empty bellies.
(To be continued)