KOCHI: The country is facing a huge corporate debt due to the unhealthy policies pursued by the previous government at Centre, said R Sundaram, convener of the Swadeshi Jagaran Manch (SJM), South India. He was speaking at the SJM Rashtriya Vichar Varg here on Sunday.
“The external sector is now at a vulnerable point. The import cover has dropped to 7 per cent this year from 15 per cent in 2008. In order to tide over the situation, the policies pursued by the UPA Government should be changed,” Sundaram said.
He pointed out that India’s external debt indicators continued to be vulnerable. “In terms of percentage of GDP, the external debt is 23.4 per cent. The share of short-term debt, which currently stands at 20 per cent, has been rising sharply since the global economic crises of 2008,” he said. “The other indicators are also far from satisfactory. The ratio of foreign exchange reserves to external debt has almost halved to 69 percent in March 2014 from 138 percent in March 2008. The import cover is now only 8 months, compared to 15 months prior to the crisis in 2008,” Sundaram said.
“The China factor is also posing a big challenge,” he added.
Speaking on the occasion, SJM all-India Co-convener Aswini Mahajan said there had not been any improvement in the economic condition after the Doha conference of 2001. SJM all-India organising secretary Kashmirilal also attended the meeting.