Comments by "红火树 RedFireTree" (@firetree2007) on "China's Overseas Investments Surge, But FDI In China Declines | World News | WION" video.
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One simple fact that Indians may not realize is that India pays the highest interest in its budget compared to the US and China. In 2024, India’s total interest payment is $131 billion, which constitutes 24% of its government budget, compared to 10% in the US and less than 9% in China. In other words, India has a significant amount of debt; its total public debt is 182% of its GDP, compared to 120% in the US and 82% in China. This means that the so-called “fastest growth of India” achieved by the Modi government over the last few years was funded by borrowing large sums of money to pay for infrastructure like roads, airports, and bridges (although many of them have collapsed, which is a different story). Since they cannot generate the money quickly enough to pay the interest, this growth is not sustainable. Now, the growth rate has dropped from 8.3% to 6.7%, and it is expected to fall further to 6.4% next year. Additionally, the interest payment is also expected to increase to 11-12%. Kind Indians, Wake up.
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OK, we can use some real number to show the fact, India's target for FDI is $110 billion a year, in 2024, its FDI is $10.6 billion, China is $70 billion. Despite this decline in investment amount, the number of new foreign-invested enterprises (FIEs) rose by 14.2 percent in China
In 2024, India has seen a notable decline in Foreign Direct Investment (FDI) inflows due to several factors, including global geopolitical tensions, economic instability, and tighter borrowing costs.
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