India's forex reserves up at $179.052 bn

[Tet]

Foreign exchange reserves increased $924 million to $179.052 billion during the week ended January 26, according to the weekly supplement released by the Reserve Bank of India on Friday.

Foreign currency assets moved up $916 million to $171.984 billion. While gold reserves were unchanged at $6.517 billion, SDRs moved up $9 million to $10 million.

The Reserve Tranche Position with the IMF dropped $1 million to $541 million.

http://www.rediff.com/money/2007/feb/03forex.htm

Stephen Roach has an interesting article on India as well.

India on the Move

A sampling.

The takeoff phase of economic development has long been associated with saving and investment rates in excess of 30% of GDP. China’s breakthrough came when its ratios pierced the 40% threshold. Yet for decades, those of India have lingered in the 20-25% range. Lacking in internal saving and maintaining a relatively restrictive stance toward foreign direct investment, India has been unable to achieve critical mass in infrastructure and capacity growth -- the main drivers of any investment-led development strategy.

That is changing. Official data now put national saving at 32.4% in the 12 months ending March 2006 -- up significantly from the 25% average of the 1990 to 2004 period. At the same time, the aggregate investment ratio has moved up to 33.4% as of March 2006 -- a major breakout from the 26% average of the preceding 15 years. And foreign direct investment is on target to hit US$13 billion in the 12 months ending March 2007, more than double India’s previous best of $5.5 billion hit in the previous year. Infrastructure, however, remains a glaring laggard -- likely to have held around 4.3% of Indian GDP in the 12 months ending March 2007 and little different from the range prevailing since the early 1990s.

http://www.morganstanley.com/views/g...70205-Mon.html

Infrastructure remains a glaring laggard, hmmmm I wonder what India does to change that. I think India has agreed to give Russia a contract to build 5 nuclear power plants, I wonder how those get paid for. Won't surprise me to see India take 20% of their foreign reserves and float a bond, just like the Chinese are doing, that would be about $35 billion.