Posts Tagged ‘BRIC nations’

India’s Investment in the US Bonds Stands Lowest Among BRIC Nations

India's Investment in US Bonds Stands Least Among BRIC Nations


India
stands least exposed among the other BRIC nations with respect to their respective foreign exchange reserves.

This is in addition to the recent development where it got evident that India has reduced its investments in US Treasury bonds between May and September.

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India’s investment in the US bonds stands at $35.90 billion as per the latest data released by the US Department of Treasury on November 17, as on September 30.

However, India’s investment in the US bonds is the lowest among all BRIC nations.

China’s investment in the bonds remained the highest at $798.9 billion.

Brazil’s exposure was $144.90 billion, followed by Russia at $121.80 billion.

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In terms of percentage of exposures to the US bonds to each of these economy’s total foreign exchange reserves also, India was the lowest.

India’s exposure to US bonds was 12.81 per cent of its forex reserves of $280.34 billion in September compared with

64.63 per cent of Brazil, 35.15 per cent of China, and 29.46 per cent of Russia.

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India’s forex reserves and US bond investments ratio improved during the period between May and September this year as its forex reserves went up.

In May, the ratio was 14.79 per cent on the forex reserves of $262.31 billion.

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Mr Jagannadham Thunuguntla of SMC Capital said: “With less exposure to US treasury bonds, India stands least vulnerable to US dollar depreciation in comparison to its BRIC peers”.

The current trend showed that though China and Russia too reduced their vulnerability ratio during May-September, Brazil increased it, Mr Thunuguntla said.


Brazil has forex reserves worth $224 billion, while Russia has $413.45 billion.

China has $2,272 billion foreign exchange reserves.

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India Moved Up in World’s Most Competitive Economies Ranking :)

Indian Economy Moves Up

On the strength of its energetic financial markets and a sound banking sector, India moved up one mark to the 49th spot in the World Economic Forum’s annual ranking of the world’s most competitive economies.

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However, according to ‘‘The Global Competitiveness Report 2009-10’‘, Switzerland took the top slot to topple the U.S. to the second position while the next 3 ranks were accounted for by Singapore, Sweden and Denmark to make up the top five among the 133 countries.

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However, the BRIC nations like, India, China and Brazil improved upon their position in the competitiveness index while Russia experienced a sharp drop.

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On the other hand, while India moved up one slot to 49 from 50 last year, China also upped its rank to 29 from 30 earlier while Brazil also moved up 8 places to 56 in the last ranking.

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However, Russia, lost ground and declined to the 63rd position from 51 last year.

Moreover, it is said that India”s cut throat performance continues to showcase a rather upturned development pattern and it precedes many advanced economies in terms of business sophistication and innovation capacity.

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Additionally, India also boasts active financial markets and a sound banking sector, supported by well-functioning institutions.

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However, taking the various parameters separately, India is ranked 16th in terms of its bustling financial markets, 25th in terms of a sound banking sector and has the 54th position for its well-functioning institutions.

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But on the other hand,as well, the country under performs on some of the basic determinants of competitiveness, namely health and primary education (101st), macroeconomic stability (96th)—though improving—and infrastructure (76th), the Global Competitiveness Report said.

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