India eyes $2.5 billion loans from World Bank

https://timesofindia.indiatimes.com/business/india-business/india-eyes-2-5-billion-loans-from-world-bank-adb-as-subsidy-costs-rise/articleshow/131823768.cms

• India is reportedly negotiating about $2.5 billion in loans from multilateral lenders: around $1.5 billion from the World Bank and $1 billion from the Asian Development Bank. Announcements may come within about two months, according to people cited by Bloomberg in the TOI report. (The Times of India)

• The money is expected to support urban infrastructure, job creation, and existing government programmes. (The Times of India)

• The immediate reason is fiscal pressure: the article says India is facing a bigger-than-expected budget gap because higher oil prices, linked to Middle East tensions, have increased spending on fuel and fertiliser subsidies. (The Times of India)

• India imports more than 80% of its crude oil, so rising crude prices quickly hit the government’s subsidy bill and reduce room for big public projects. (The Times of India)

• The World Bank loan would fit into a broader India–World Bank framework announced earlier, involving $8–10 billion in annual financing over five years, focused on jobs, private investment, infrastructure, skills, urban development, and energy security. (World Bank)

• The World Bank has said the talks involve possible support for structural reforms aimed at private-sector employment and growth. Translation from banker-speak: money often arrives with policy advice attached, because apparently cash cannot travel alone. (The Times of India)

Will this make India “slave of America”?

• The World Bank is heavily influenced by the US. The US is the World Bank Group’s largest shareholder, holds 15.79% voting power in IBRD, and has veto power over certain changes in the Bank’s structure. (World Bank)

• The ADB is not an American bank, but the US is one of its two biggest shareholders. Japan and the US each hold about 15.6% stake in ADB, and ADB’s presidency has historically been held by Japanese officials. (Reuters)

• If India keeps relying on loans from institutions shaped by US-Japan-Western financial power, critics can argue that India’s policy choices may gradually be nudged toward their preferred model: private-sector reforms, subsidy discipline, market opening, and infrastructure finance structures that suit global capital.

• Loan money can reduce immediate fiscal pain, but it can also increase external obligations. If borrowing becomes a habit instead of a bridge, India may have to care more about lender confidence, ratings agencies, and global financial expectations than domestic political priorities. Wonderful system: borrow money to preserve sovereignty, then spend years proving to creditors that you are sovereign responsibly.

• Since the article links the loan need to rising subsidy costs, critics may say India is borrowing externally to manage domestic welfare pressures. That can become risky if future governments feel pressured to cut subsidies or redesign policies to satisfy lenders.

More ladli behna, lallu bhaiya type schemes

It seems that the government fears to not get a win in 2029... they already loot the people in many ways and still haven't enough... and then the next government has to bear the consequences...

I won't forget that the government couldn't account for an enormous sum in the last financial report...

And reading in the "news" thread makes my heart very sad... so much betrayal and (moral) corruption because of never ending greed

I doubt these people know what they're doing or worse they know what they are doing and doing it anyway.

You can argue it this way, but keep it factual. Otherwise it becomes political fan fiction, and India has suffered enough genres already.

Previous Indian PMs understood that foreign-policy neutrality needs economic strength. It means having enough reserves, manageable debt, and low dependence on foreign lenders so India can say “no” when big powers pressure it.

Ex in 1991. India had been pushed into a weak position, but under P. V. Narasimha Rao and Finance Minister Manmohan Singh, reforms helped rebuild India’s external strength. Apparently Ambedkars problem of rupee and other thesis are studied...also Manmohan singhs finance policies are case studies in few unis. But india is actively removing judiciary and corruption chapters

Under the Vajpayee government, India went further and prepaid high-cost foreign loans. The same official report says the government prematurely repaid sovereign multilateral and bilateral loans of $2.9 billion in 2002-03 and $3.8 billion in 2003-04, and fully liquidated bilateral loans from countries including Sweden, Netherlands, Austria, Australia, Canada, Spain, Denmark, Kuwait, and Saudi Arabia. (Department of Economic Affairs)

Low external influence helped india stay neutral and build its own soverginity

Vajpayee showed strategic intelligence by improving ties with the US while still refusing to become a US camp follower. India conducted nuclear tests under his government, accepted the diplomatic cost, and later rebuilt relations from a position of strength. TIME notes that Vajpayee called India and the US “natural allies,” but this came alongside India asserting its nuclear position despite global pressure. (Time)

Manmohan Singh as PM strengthened relations with the US through the civil nuclear deal, but still publicly defended “strategic autonomy” as a red line. (Time)... Mind you india was non signatory of NPT.

Modi’s problem IMO is that his government projects strength while India is again seeking large multilateral loans at a time of subsidy pressure and budget stress. I highly doubt Nirmala is even 0.1 percent of what Singh was. Structural reform is going to be freebies mostly(The Times of India). No farsightednes. No good policies heck govt is unable to make a statement in NEET scam. We have become international mockery with telegram ban and paper leaks and degree frauds. Why can't PM appoint some people with actual caliber is beyond me. Even Pakistan has reduced fuel prices PM will just come back to visit India for yoga whatever and go back to foreign tour again with another melody packet. We are not even prepared for El nino, despite heatwaves no strategy to combat it.

We have to wait Dhurandhar to Dhurandhar to understand this govt now