I think Jairam Ramesh meant the same when he said this is model of unsustainability.
Keep borrowing, keep increasing debt, report growth & then use currency norms as toggling instrument to appreciate/devalue rupee to balance undertakings.
NRJ,
i am not very sure about what is it that jairam ramesh is talking about. the reference is in context with environmental, social and governance issues which they are trying to globally standardise. please give a detailed description on what is he hitting and hinting out, i am not able to make much from the article posted.
now he says india and china are heading the US way, but if the correlation is about debt trap then i suspect that is not what he is hinting at.
china is trying to live within its means pretty much, we are not. china has a socialist model as well, but those chaps know where to draw the line, not our politicians.
check these figures:
china: public debt -
17.5% of GDP, revenue - $1.149 trillion, expenses - $1.27 trillion, gdp - $6trillion
india: public debt -
71.84% of GDP, revenue - $185.4 billion, expenses - $269.8 billion, gdp - $1.7trillion
our political class is slowly poisoning the country and busy digging the grave.
72% public debt is a staggering and a scary figure for an economy like india, when we have just started, its really been a case of one good decade so far and is a ripe recipe of putting us in a trap where if we want to get out we will require more loans and heavy taxes because no way are they going to give up on their extremely expensive unsustainable "socilist" plans because that earns them votes, or king size lives our political class/bureaucracy sustain. its a trap in which pakistan is right now, though slightly different case.
this country needs a course correction from the follies being committed.
- we need to live within our means.
- limit the unproductive expenses.
- create an environment where people find enough opportunities to fend for themselves, and not what is happening now, where the populace is being made to become a liability on the state exchequer, with non-existent skill sets.
we are not at all attempting the first two points and the third is stuck for good over 7 years now. we need to get out of that mindset of socialism, if not, we are headed for a very rude wake up call and my fear is would it then have been a case of completely missing it out.