India Economy - Low External Debt Is Underpinned By Large Voluntary Capital Inflows: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.India is stable from a macroeconomic standpoint because it has taken on very little external leverage over the past eight years. India’s external debt was up just 39.1% in March 2022 compared to its level in March 2014. In the previous 10 years (March-2004-March-2014), India’s external debt had increased by 296%, leaving the economy much more vulnerable to the ‘Taper Tantrums’ of those times. And there had been one even faster decade of increase in external debt — a 363% increase between March 1980 and March 1990, which inevitably resulted in a balance of payments crisis in 1991. The external debt/gross domestic product ratio (a measure of a country’s capacity to carry external debt) moderated to just 19.5% in March-22—far below the 35% threshold level of worry for a country that can access global capital markets (like India since 1992). The closest India came to the risk threshold was in 1994 (33%); the recent peak of 24% reached in March 2014 was still well below the risky threshold..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Economy - Low External Debt Is Underpinned By Large Voluntary Capital Inflows: ICICI Securities

India is stable from a macroeconomic standpoint because it has taken on very little external leverage over the past eight years.

Choose a plan