2 Trillion Capital Exodus from India
The United States is wielding the sickle high, accelerating the harvest of developing countries that are highly dependent on the US dollar economy.
Just now, another 200 billion in funds have just withdrawn from India, and will the Indian economy also regress 20 years?
Speaking of which, Japan has Abenomics, and India has Modiconomics.
That is, Modi wants to promote the Industry 4.0 plan, and wants to make India a global manufacturing factory.
In my words, that is "Muddling Through Economics."
Why do I say this?
You see, India neither offends Russia, nor even makes a fortune by selling cheap energy during the Russia-Ukraine conflict, nor dares to offend China, because China has been India's largest trading partner for a long time.
For this reason, India has joined both the Shanghai Cooperation Organization and is one of the BRICS countries.
However, India dares not offend the United States.
Because Modi's dream of manufacturing is more dependent on the US dollar economy.
So, India joined the Quadrilateral Security Dialogue, which includes the United States, Japan, and Australia; later, Modi and Biden toasted to each other, and in return, Biden made a lot of promises and countless enterprises threw out the olive branch.
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Even Musk said that he wanted to bring Tesla and Starlink to India.
This trip, Modi can be said to be in the bag, and return with full load.
So far, I can say that it is Modi's muddle through, and the muddling through economics, which has indeed made the Indian economy develop rapidly, and the United States has also become India's largest trading partner.
But now Modi's muddle through policy has problems.
That is because the US dollar economy that Modi has high hopes for is now facing difficulties, not only has the demand plummeted, but it has also begun to backfire on the Indian economy.
This will not only pause the Indian economy, but it is also very likely to make India regress 20 years.
According to the report of Caixin Media, India's export volume in June this year decreased by 22% year-on-year.
In July, Foxconn called off a $19.5 billion chip factory in India, and Disney is also considering withdrawing from India.
In addition, some car companies such as Ford, General Motors, Harley, BYD, and Tesla have refused to cooperate with India, and the news is frequently exposed.
According to the latest data from the National Securities Depository Limited of India, foreign institutional investors have sold financial assets worth as high as 2 trillion rupees since the beginning of 2023, equivalent to $24 billion, which is twice the net outflow of about $12 billion during the 2008 financial crisis, and the withdrawal is the highest in 20 years.
The reason for this is that India's foreign investment policy is unpredictable, wanting foreign capital to invest in India and wanting to learn from the United States to cut people's leeks.
It can be said that India's tax disputes and unstable investment policies make foreign capital dare not easily invest in India.
Secondly, although India is now highly dependent on the US dollar economy, the foreign exchange reserves are seriously insufficient and are easy to be shorted by foreign capital.
At the beginning of this year, Wall Street continued to short the Indian tycoon Adani, which is an example.
Now even the Reserve Bank of India has said that they cannot control the rupee's decline.
The Indian stock and bond markets have the risk of a big outbreak, which is also one of the reasons why foreign capital withdraws from India.
Thirdly, whether it is from the investment environment or the work efficiency of Indian workers, it can only make people awe-inspiring.
Coupled with the rise in the price of raw materials in India and the shortage of commodity supply chains.
It can be said that everyone has lost confidence in Modi's economics, and the withdrawal of capital is naturally understandable.
This is really a dream of cooperation, and the withdrawal of capital is the reality!
It seems that harvesting India's wealth is the real goal of Biden!
Some media have revealed that the potential of India's manufacturing industry has been seriously overestimated.
If the United States officially enters a recession in 2024, then the recession in India will be intensified.
Finally, I want to say that India's muddle through policy is not to pull the seedlings to help them grow, but to practice internal skills.
Modi must not forget that water can carry a boat, but it can also overturn a boat!
The economy built by the US dollar is not fun.
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