“Saying 10 percent growth with giant deficits and debts just does not work. Spending is still too high in relation to income and in a year or two or three or four, it’s all going to come back to haunt India.
Should India’s government continue to spend at the present rate, the nation’s debt to gross national product may reach 100 percent in three to four years from more than 80 percent currently.
Many studies have shown that when your debt gets up to 90 percent of GNP, your growth slows immensely and you usually wind up having serious problems. India is becoming a very indebted nation and that’s not good for India or for the world.”
in Bloomberg
