India's National Debt Is Not a Problem! - Nifty 50 - FED
National Debt of India and Nifty 50
Recently, Dhruv Rathee, who is a vocal critic of India’s BJP-led federal government put out a tweet, in which he presented some figures, through which he was essentially trying to suggest that over the last 10 years that the BJP has been in power, India’s national debt has spiraled out of control! Now this is something that must be examined threadbare, since, if Rathee is even remotely right, it will have grave implications for our national economy as well as for our markets, because history is very clear about this – whenever the national debt of a country starts to spiral out of control, it always ends badly!
In this video, I present a framework to classify the national debt of any country into 6 broad buckets, and what are the implications for the economy and markets are in case of each of these 6 buckets. Also, in this video I try to look at India’s national debt through the lens of the performance of our stock market, because it is the stock market of any country that has historically been always the first to detect and flag the dangers, whenever the debt of any country starts to spiral out of control and the future growth prospects of that country is NOT sufficient to support the orderly and timely repayment of that debt.
