Foreign capital markets are facing a problem of more growth, forcing them to lend overseas to achieve returns. While the US and Chinese economies are relatively strong and able to attract overseas money from Europe and Japan, they are still locked in a growing trade war with each other that poses risks to foreign lenders.
https://www.thebalance.com/yen-carry-trade-explained-pros-cons-how-it-is-today-3305971
https://www.bloomberg.com/news/articles/2019-02-28/euro-funded-carry-trades-for-emerging-markets-are-back-in-vogue
Emerging markets are the answer to their needs, and India is in a good position to exploit this. A missing factor is a foreign currency denominated bond that would remove the rupee depreciation risk.
https://www.bloomberg.com/opinion/articles/2019-07-28/india-s-dollar-bond-made-too-many-enemies
Maybe it's time for India to issue Yen-denominated and Euro-denominated bonds.
https://asia.nikkei.com/Economy/India-s-plan-to-float-foreign-currency-bonds-stalls
Maybe the answer is that we should just call it a TARP bond. Suppose we created a TARP framework with associated legislation that allows our sovereign debt to lean on foreign capital markets for this specific purpose only. Would the RSS find this acceptable?
https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program
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In the past two decades, Engineering in India meant making cars and cars alone... China meanwhile became world-leader in Electric buses, warships and is even aiming to make wide-body jets.
In the low-end, it is not easy to compete against producers in Veitnam and Bangladesh:
he had to lay off about three-quarters of his tailors over the last six months after he lost his two biggest clients — clothing brands in Italy and France. He said he could not match the prices they could get in Bangladesh, where wages are far lower.
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