India's Growing Foreign Debt: Who Pays the Price?

Trinamool Congress MP Saket Gokhale has raised concerns over what he describes as a 'heavy' borrowing spree by the Indian government from international banks. According to Gokhale, these funds are used to finance projects announced by Prime Minister Modi during election campaigns, leaving citizens to shoulder a long-term financial burden in the form of $91 billion in foreign debt amassed over seven years.

Gokhale, in his post on X, highlighted that the annual interest payment on this debt is a colossal Rs 45,000 crore, equating to India's entire higher education budget. He further alleged that this financial obligation contradicts Modi's election promises, which are left unfulfilled once the electoral campaign concludes.

Recent data from the Reserve Bank of India indicates a 10% increase in external debt, now at $736.3 billion, raising questions about the country's fiscal policies. Gokhale demanded clarity on who will ultimately bear the consequences of what he termed as 'false election promises' funded by foreign borrowing.

(With inputs from agencies.)