A Study of External Debt Trap Threat Faced by Indian Economy

Authors(2) :-Dr. Mansi Kukreja, Dr. Heena Upadhyay

A debt trap occur to a country when somebody takes debt on a high-interest rate acceptance and is barely able to disburse back the responsibility of interest, thus being continuously trap in debt even by refinancing. Public debt is often a country’s major accountability: This is principally factual in developing countries, where a substantial sum of national income is exhausted repay such debt obligation. High debt servicing has thrown developing countries into a "debt trap", depriving them of the resources needed to secure long-term economic development and build up strong social and physical infrastructures. In current decades, unsustainable debt – mostly external – has brought country after country into deep economic crisis, with dramatic social consequences for their populations. This is a concealed virus eating India's Budget and it is quite untreatable. It is called a "debt trap" and its reason is simple — greed. India's problem is that it spends much more than it earns. That is all the term "fiscal deficit" means. The focus of paper in this study is to investigate the impact of debt on Indian economy and how government fills the gap between its earnings and spending through relentless borrowing.

Authors and Affiliations

Dr. Mansi Kukreja
B.Com. M.Com., MBA (Finance), Ph.D. (HR), Associate Professor, IBMR, IPS Academy, Indore, Madhya Pradesh, India
Dr. Heena Upadhyay
B.Com. MBA (International Business), Ph.D. (Economics), Assistant Professor, IBMR, IPS Academy, Indore, Madhya Pradesh, India

Debt Trap, GDP, Indian Economy, External Debt

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Publication Details

Published in : Volume 6 | Issue 3 | May-June 2019
Date of Publication : 2019-06-30
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 43-50
Manuscript Number : IJSRSET19639
Publisher : Technoscience Academy

Print ISSN : 2395-1990, Online ISSN : 2394-4099

Cite This Article :

Dr. Mansi Kukreja, Dr. Heena Upadhyay, " A Study of External Debt Trap Threat Faced by Indian Economy, International Journal of Scientific Research in Science, Engineering and Technology(IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 6, Issue 3, pp.43-50, May-June-2019. Available at doi : https://doi.org/10.32628/IJSRSET19639
Journal URL : http://ijsrset.com/IJSRSET19639

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