India will manage to escape through its current financial crisis without halting payments on its $ 70 billion foreign debt.
The delay in the formation of a new government set back negotiations with the International Monetary Fund(IMF) for a new rescue loan.
India hopes to borrow $ 2 billion from the IMF,which has already lent New Delhi $18 billion in January to shots up foreign exchange services.
Desperate for cash,government recently sold nearly 20 tonnes of gold confiscated from smugglers.
Some banks that hold India's short-term debt of $ 4 to 5 billion had called in their loans,but most were renewing them,albeit sharply at higher interest rates.