India is at no risk of defaulting on its international debt despite balance of payments woes caused by the Gulf Crisis,the finance secretary,Mr. V.P. Shukla said yesterday.
India with foreign debts of more than $70 billion was badly hit by the Gulf Crisis which cut exports,halted earnings from migrant workers and badly affected tourism.The loss of foreign earnings was about two billion dollars,Mr. Shukla said.
“There is political consensus,regardless of election uncertainty,that the gap between government spending and revenue must be cut.In December,the outgoing government pledged to cut that deficit to 6.5 percent of gross domestic product.”