30/09/2024
Germany, USA, UK, Japan etc have defaulted or got stressed in repayment of debt in the last 200-250 years’ history. India have never defaulted in its entire history. Yet the credit ratings of these so called developed nations are AAA plus while that for India are BBB minus. Many of these countries have a very very high debt to GDP ratio while India is still comfortable and its external debt to GDP ratio is not so high. Yet India gets a lower rating. Lower ratings mean higher borrowing costs and weaker currencies. So, these Western nations have devised a system that the nations like India are kept under control by keeping our currencies suppressed and keeping our ratings low. India needs to bring down its imports of crude oil, electronics and gold by finding alternatives to crude oil, by manufacturing electronics in India and by curbing the use of gold. If we can do that, India can start challenging the global financial systems, rating agencies and really set things in proper order. Some of the European nations are on the verge of bankruptcy despite their AAA ratings.