Indian media G-News headlined “China’s ‘charity’ to Bangladesh to put pressure on India!” Besides, another popular West Bengal newspaper, Anandabazar, did not choose such words in its headline, but wrote in the news, “China’s attempt to get Bangladesh by its side by spreading commercial investment and charitable money is not new.”
However, by comparison, Bangladesh has benefited from tariffs. But India itself is plagued by debt or charity.
The total amount of charitable or foreign loans taken by India from abroad is 573.9 billion as on March 31, 2020. This amount of charity is more than 20% of the country’s total GDP.
These loans have been taken by India from various multilateral, bilateral sources – including Asian Development Bank, IDA, IBRD, IFID and others.
The amount of charities or loans taken by India from multilateral sources is about. 80.22 billion. Apart from this, India has borrowed from bilateral sources from Japan, Germany, France, the United States and even China. India’s total debt from these sources is now 26.33 billion.
According to the International Monetary Fund report, Bangladesh’s public debt may reach 40.12% in FY 2021. According to the Fiscal Monitor’s April 2020, the IMF has released gross loans to Sri Lanka, Bangladesh, India, Pakistan and Nepal.
According to the report of IMF the debt of India is 73.80% of their GDP.
This calculation combines domestic and foreign debt.
As against such loans or charities, India has reserves of 506.644 billion as of June 12, 2020, while their foreign borrowings amount to 573.9 billion. Note here that this reserve of India along with their gold reserves. More specifically, out of their 508.644 billion reserves, Foreign Exchange Assets (FCAs) amount to ৬৮ 47.636 billion, gold reserves have a market value of. 33.173 billion, SDRs (Special Drawing Rights with the IMF) ৪ 1.454 billion and the remaining 4. .280 billion to the Reserve Bank of India.
Meanwhile, the total debt of Bangladesh is much less than that of India. Half as a percentage. Now the question remains, if Bangladesh benefits, if it is called charitable in the Indian media, then why India’s debt will not be charitable?
Source: Defense Research Forum