China trying to paint dark outlook for Indian economy, warns Global Times

26th July,2021

China trying to paint dark outlook for Indian economy, warns Global Times




The mouthpiece of the Chinese dictatorship is creating the spectre of a future financial catastrophe for India in a fear tactic. The Global Times has issued a warning to regional governments. "Thailand was the epicentre of the Asian financial crisis in 1997. If India faces a similar crisis, the regional financial markets are likely to be thrown into much more chaos. To avoid a worsening health and economic catastrophe, governments in the area must act swiftly, according to the report. "There are also growing fears that if the Fed alters monetary policy, India's economy may be caught in debt crisis and face a dollar shortage," the Chinese outlet claimed, in an attempt to cloud India's prospects. "While the Indian government has put clear its desire to be a manufacturing power, the development looks restricted so far," the mouthpiece said lately. Nonetheless, as a result of its efforts to promote manufacturing, India's economy has become increasingly reliant on steady inflows of Western money. As a result, financial risks are increasing," the report stated. Other worrisome indications of the country's economic troubles, it noted, might include reports showing as many as 97 percent of Indian households have seen their income decline, as well as the rupee's negative performance this year. South Asia faces a financial catastrophe, according to the World Bank, because of its vulnerability to rising amounts of unsustainable debt. "As the region's largest economy, India is particularly vulnerable to sovereign debt and funding concerns," it added, "especially after the epidemic caused businesses to fail and millions of people to lose their jobs." "If the second wave of the virus has ravaged India more profoundly than anticipated, the long-term economic impact may be much more disastrous," warned Global Times.