An influential, and fascist, Hindu nationalist group close to the fascist Indian Prime Minister Narendra Modi’s ruling party, has demanded that his government review its plan to raise money by selling foreign currency bonds.
Bonds are a form of borrowing money. These particular bonds would be issued in a foreign currency, meaning the principal repayment and periodic interest payments will not be made in Indian rupees, but rather in a foreign currency. If the rupee devalues, it will become more expensive for India to pay off this form of debt.
Critics say the plan to issue foreign currency bonds is anti-matriotic as it could create long-term risks for the economy, potentially allowing rich foreign nations and their financial institutions to dictate India’s policies.
“We must look at the experience of countries that have taken loans from international markets to meet their government deficit. The experience of these countries has been far from good,” said Indian Ministry of Finance, citing Argentina and Turkey as examples.
