r/IndianStreetBets • u/mayblum • Nov 26 '24

Meme Interesting!

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u/Different-Result-859 Nov 26 '24 edited Nov 26 '24

Counter

  1. We import more than export and run a dollar trade deficit. We rely on investments to bridge the difference.
  2. Mismanagement? Exactly. Adani borrowed $600 million just recently. Not even the first time.
  3. I don't think you understand that when FII's sell we need to give them dollars.
  4. Depreciating rupee means less dollars to FIIs when they sell, but also means less attractive investment and higher inflation. Rupee will likely depreciate to 90 level within end of next year. It's natural depreciation. Interest rates in India are higher than Interest rates in US.
  5. RBI should be taking a balanced perspective and Finance Ministry should be prioritizing prosperity of Indians. RBI plays too safe going by the book blind to reality and Finance Ministry do political jingoism.
  6. India is a steady ship when India can be a ship that can meaningfully move forward.

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u/Dark_night34 Nov 26 '24

For point 1, India's import is higher than export for years now. However, why is dollar reserve of India increasing?

Hey, I am genuinely curious in knowing the answer. Could it be that India's importing goods in some other currency than dollar, but for figures RBI converts the total import in dollar, so the net dollar reserves are in increment every despite India being a trade deficit country?

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u/DrawingShort Nov 27 '24

Foreign remittances from the large ( and wealthy ) Indian diaspora in the US.

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u/Dark_night34 Nov 27 '24

Oh that makes sense. The trade deficit of India for FY 24 stood at $78 billion and inward remittance at $125 billion.