India Offers USD 10 Billion To Aid Eurozone

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NEW DELHI: India on Tuesday committed to extend a $10 billion (over Rs 55,000 crore) lifeline to help ailing Eurozone countries grappling with a sovereign debt crisis, which has slowed down the global economy. …This is the second time in less than a year that India has decided to chip with a generous dose of funding. Last year, it got Parliament to approve a Rs 9,000 crore contribution towards IMF's New Arrangements to Borrow, a special funding tool meant to provide a lifeline to beleaguered economies. …In this year's budget, the finance ministry got parliamentary approval to invest around Rs 56,500 crore in international financial institutions, which officials had said would be used to increase India's voting rights in multilateral bodies such as IMF. …India is seeking funds from the private sector and multilateral and foreign banks to fund its ambitious infrastructure spend of $1 trillion over the next five years.

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The EU member countries are not pleased with having to bailout fellow Eurozone members. At least Germany would love to put an end to this – immediately.

BTW, doesn't India have a crisis of its own to worry about? It is not like the Indian economy is in great shape (irrespective of all the crap you keep hearing about India shining bla bla). Here are just a few headlines to give you an idea why all is NOT well:

• Indian economy to further slow down in coming months: OECD
• Indian economy is in stagflation: Moody’s
• India is facing a difficult economic situation: Pranab
• India's economic prospects have weakened: Fitch Ratings
• Fitch revises India’s outlook to ‘negative’ from ‘stable’
• India faces serious challenges in short to medium term: Aberdeen AMC Asia
• 41% drop in FDI inflows in April
• Government determined to take tough decisions to revive economy: PM

There is nothing wrong with wanting to help the less fortunate. Looking at the conditions in India (politically, economically or socially), India would be more fortunate than say Bangladesh or Pakistan, but is in no position to fund extensive European bailouts.

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The central and state treasury being used to pay for European bailouts, building statues, spending obscene sums on RENOVATION of public toilets, and fuck knows what not. But when it comes to the development of the infrastructure, the country is SEEKING funds from foreign banks?!

The country is seeking funds from multilateral and foreign banks and the private sector to fund ITS OWN infrastructure. At the same time, this country is committing huge amounts to aid other countries!? Khud khaane ke liye paise nahin hain, aur duniya ko bachaane chale!

You need the money for your own projects, but you are more than happy committing that to other countries and expecting that they will lend it back to you? Where is the sense in that? Wouldn't it be better if you could fund your own development programs?

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Wanting a greater say in multilateral bodies and the desire to increase the country's voting rights in multilateral agencies seems to be costing a hell lot more than the possible benefits that it MIGHT yield.

And what exactly does India expect to do with a GREATER SAY in multilateral agencies? Indian representatives end up barking out a wrong speech – written for another country's representative - without even realising it. And this at the UNSC!! [Link]