Public opinion regarding the India-US trade deal is predominantly negative. Commenters express strong distrust towards the US, especially during Trump's presidency, perceiving the US as an unreliable partner. There is a call for India to assert independence, diversify trade relations, and explore alternatives like BRICS, emphasizing self-reliance. The sentiment reflects dissatisfaction with India's submission to US demands, skepticism over negotiation effectiveness, and concerns about fairness in trade agreements. There's also interest in understanding broader economic implications, though some discussions diverge into unrelated financial topics, noting a desire for educational content.

India

United States

China

BRICS

PRÉCIS

#India and EU Aim to Seal Landmark Trade Deal by Year’s End

India and the European Union have vowed to finalise a long-awaited free trade agreement this year, marking a significant step in deepening economic ties between the two powers. European Commission President Ursula von der Leyen made the announcement in New Delhi during a high-profile visit, accompanied by EU leaders, as both sides seek to bolster trade links amid shifting global alliances.

Talks on the trade pact, which had been stalled for nearly a decade before resuming in 2021, have faced hurdles over tariffs, market access, and visa rules. The EU is pressing India to cut steep import duties on cars, whiskey, and wine, while New Delhi wants greater access for its pharmaceutical and textile industries in the European market. India has also raised concerns over the EU’s plan to impose new carbon tariffs on goods such as steel and cement from 2026.

Trade between India and the EU has surged by nearly 90% over the past decade, reaching $137.5 billion in the last financial year, making the bloc India’s largest trading partner in goods. Von der Leyen emphasised that in an era of geopolitical tension, both sides have a strong interest in strengthening their partnership and diversifying key supply chains in areas such as batteries, semiconductors, and clean energy.

With Washington also in trade talks with New Delhi and the prospect of reciprocal tariffs looming under Donald Trump’s potential return to the White House, India is keen to secure favourable agreements with both its Western partners. However, experts warn that striking a balance between domestic interests and EU demands will not be easy. The coming months will be crucial in determining whether this long-awaited deal can finally be brought to fruition.

TheSleepingPoet

Bubbly-Cod5985

Isn't India also profiting by European sanctions of Russia, as products are being funneled through their country and also increased trade with Russia directly?

LaserCondiment

Tl;dr after feeding China economy for many years now we jump to feeding India economy. We will actively work towards moving every piece of industry still left in EU from moving to china so we can destroy the EU even more!

bot_taz

Just like India and UK agreed to wrap up free trade by the end of 2023?

News flash, it is still in deadlock

17031onliacco

India is going to attempt to load off their """"skilled workers"""" to us like they did in the trade negotations with the UK. I hope the EU saw what happened in the UK and Canada and rejects this.

No-History-Evee-Made

Dumped by the US , now so called garden in visiting jungle with 26 leaders 🤣

510mm_Go_Bang_Bang

Why is the EU dedicated to self destructing?

jetsetvf

[deleted]


---
**Post Approved**: Your submission has been approved!

🔗 **Archive**:
* [archive.today](https://archive.is/submit/?submitid=&amp;url=https://www.livemint.com/news/india/india-trades-so-far-behind-china-in-southeast-asia-it-s-frightening-11697567262650.html)
* [WayBack Machine](https://web.archive.org/web/https://www.livemint.com/news/india/india-trades-so-far-behind-china-in-southeast-asia-it-s-frightening-11697567262650.html)
* [Google Webcache](http://webcache.googleusercontent.com/search?q=cache:https://www.livemint.com/news/india/india-trades-so-far-behind-china-in-southeast-asia-it-s-frightening-11697567262650.html)


📣 **[Submission Statement from OP](/r/GeopoliticsIndia/comments/17buvzp/india_trades_so_far_behind_china_in_southeast/k5luki9/)**:
&gt; SS: 

&gt; The article features an interview with Kishore Mahbubani, a veteran Singaporean diplomat and geostrategist, who discusses the reordering of global politics toward greater multipolarity and the role of India and China in it. He also talks about the challenges and opportunities for India in Southeast Asia, where China has a dominant presence.

&gt; Mahbubani argues that the world is witnessing a shift from a unipolar to a multipolar order, where the US, China, India, Europe, Japan and Russia will be the major players. He says that India has a strategic advantage as a democracy and a civilizational power, but it needs to overcome its domestic problems and improve its relations with its neighbors.

&gt; Mahbubani also points out that India trades so far behind China in Southeast Asia, it's frightening. He says that China's trade with ASEAN is more than six times that of India's, and that India should do more to engage with the region. He suggests that India should join the Regional Comprehensive Economic Partnership (RCEP), a mega trade deal that includes China and ASEAN, and also pursue bilateral free trade agreements with individual countries. He says that India has a lot to offer to Southeast Asia in terms of culture, education and tourism.

&gt; (1) India trades so far behind China in Southeast Asia, it’s frightening .... https://www.livemint.com/news/india/india-trades-so-far-behind-china-in-southeast-asia-it-s-frightening-11697567262650.html.

&gt; (2) Voluntary carbon trades to start in 2023 | Mint. https://www.livemint.com/news/india/voluntary-carbon-trades-to-start-in-2023-11674498997601.html.

&gt; (3) India, Russia explore new maritime corridors to unlock trade ... - Mint. https://www.livemint.com/news/india/india-russia-explore-new-maritime-corridors-to-unlock-trade-potential-11694697240380.html.

&gt; (4) India-China in 2023: Bilateral Trade and Investment Prospects. https://www.india-briefing.com/news/india-china-bilateral-trade-and-investment-prospects-26894.html/.

---

📜 **Community Reminder**: Let’s keep our discussions civil, respectful, and on-topic. Abide by the subreddit rules. Rule-violating comments may be removed.




**📰 Media Bias fact Check Rating :**  




|Metric|Rating|
|:-|:-|
|Bias Rating|center|
|Factual Rating| mixed|
|Credibility Rating|medium credibility|

This rating was provided by Media Bias Fact Check. For more information, see Mint Newspaper (livemint.com)'s review [here](https://mediabiasfactcheck.com/mint-newspaper-bias/).

❓ Questions or concerns? [Contact our moderators](https://www.reddit.com/message/compose/?to=/r/GeopoliticsIndia).

GeoIndModBot

Well thanks to the socialists we only opened our economy 15 years after china so yes it makes sense

Also when we did try to modernise our farming system with the farm bills the whole western ecosystem came to attack us

just_a_human_1029

godmadetexas

Our decision to not join RCEP was based on understandable fears of becoming a dumping ground for Chinese products, but ASEAN joining it then shut us out of SE Asian markets because our exports cannot compete with a captive market for China. 

We bet on exports to Europe and the US over inter-Asian trade, and time will tell if that was wise. But the decision not to join RCEP was not taken lightly - it aligns with the government's ambition of fostering competitive export industries which would allow us to enter into FTAs in the future from a position of strength.

49thDivision

SS: 
The article features an interview with Kishore Mahbubani, a veteran Singaporean diplomat and geostrategist, who discusses the reordering of global politics toward greater multipolarity and the role of India and China in it. He also talks about the challenges and opportunities for India in Southeast Asia, where China has a dominant presence.

Mahbubani argues that the world is witnessing a shift from a unipolar to a multipolar order, where the US, China, India, Europe, Japan and Russia will be the major players. He says that India has a strategic advantage as a democracy and a civilizational power, but it needs to overcome its domestic problems and improve its relations with its neighbors.

Mahbubani also points out that India trades so far behind China in Southeast Asia, it's frightening. He says that China's trade with ASEAN is more than six times that of India's, and that India should do more to engage with the region. He suggests that India should join the Regional Comprehensive Economic Partnership (RCEP), a mega trade deal that includes China and ASEAN, and also pursue bilateral free trade agreements with individual countries. He says that India has a lot to offer to Southeast Asia in terms of culture, education and tourism.


(1) India trades so far behind China in Southeast Asia, it’s frightening .... https://www.livemint.com/news/india/india-trades-so-far-behind-china-in-southeast-asia-it-s-frightening-11697567262650.html.
(2) Voluntary carbon trades to start in 2023 | Mint. https://www.livemint.com/news/india/voluntary-carbon-trades-to-start-in-2023-11674498997601.html.
(3) India, Russia explore new maritime corridors to unlock trade ... - Mint. https://www.livemint.com/news/india/india-russia-explore-new-maritime-corridors-to-unlock-trade-potential-11694697240380.html.
(4) India-China in 2023: Bilateral Trade and Investment Prospects. https://www.india-briefing.com/news/india-china-bilateral-trade-and-investment-prospects-26894.html/.

MaffeoPolo

#####&amp;#009;

######&amp;#009;

####&amp;#009;

&gt; # [India trades so far behind China in SE Asia, it’s frightening: veteran diplomat](https://www.livemint.com/news/india/900)
&gt; 
&gt;   
&gt;   
&gt;  - [Home](https://www.livemint.com/)
&gt; - [Latest](https://www.livemint.com/latest-news)
&gt; - [News](https://www.livemint.com/news)
&gt; - [Markets](https://www.livemint.com/market)
&gt; - [Premium](https://www.livemint.com/premium)
&gt; - [Money](https://www.livemint.com/money)
&gt; - [Mutual Fund](https://www.livemint.com/mutual-fund)
&gt; - [Industry](https://www.livemint.com/industry)
&gt; - [Companies](https://www.livemint.com/companies)
&gt; - [Technology](https://www.livemint.com/technology)
&gt; - [Web Stories](https://www.livemint.com/web-stories)
&gt; - [Opinion](https://www.livemint.com/opinion)
&gt; - [Videos](https://www.livemint.com/videos)
&gt;  
&gt;   Copyright &amp;copy HT Digital Streams Limited   
&gt; All Rights Reserved.
&gt; 
&gt;       [premium](https://www.livemint.com/lm-img/img/static/mintPremium.png)   News
&gt; 
&gt;      [Veteran Singaporean diplomat and geostrategist Kishore Mahbubani.](https://www.livemint.com/lm-img/img/2023/10/17/600x338/2-0-130699246-Kishore-73Kishore-0_1681214442155_1697567482484.JPG "Veteran Singaporean diplomat and geostrategist Kishore Mahbubani.")      Veteran Singaporean diplomat and geostrategist Kishore Mahbubani. ## Summary
&gt; 
&gt; - In an interview, Kishore Mahbubani also spoke of the reordering of global politics toward greater multipolarity
&gt; 
&gt;  
&gt; 
&gt;  China’s growing heft and trading relationships with Asean nations has propelled it far ahead of India in Southeast Asia, veteran Singaporean diplomat and geostrategist Kishore Mahbubani said.
&gt; 
&gt;  Mahbubani, who served as president of the United Nations Security Council, said that New Delhi has had a tendency to view the region as a backwater, which has caused this problem. However, he also argued that Asean (Association of Southeast Asian Nations) countries would welcome an enhanced Indian presence as US-China competition heats up.
&gt; 
&gt;  In an interview, Mahbubani also spoke of the reordering of global politics toward greater multipolarity with India expected to do well from this shift. Edited excerpts:
&gt; 
&gt; ## India is seen as a rising power. How do you see its position sitting here in Singapore?
&gt; 
&gt; I believe, on a broader scale, that the 21st century is not going to be the Chinese century. It will be the Asian century and you will see the return of China, India and in fact the rest of Asia. India will also do very well, China will do well and Asean will do well. I think from India’s point of view, the simultaneous return of China and India plus, of course, the continuation of other powers such as Europe, Russia and Japan means that we are entering a genuinely multipolar world, and a multipolar world is good for India. That’s because it creates more opportunities for everybody. A multipolar world means that, eventually, American global influence is going to shrink. It will constrain the US but enhance the role of rising powers like China, India and others. So, it is in that sense, from India’s point of view, a favourable geopolitical environment.
&gt; 
&gt; ## Are there any specific policy changes that you would like to see India make to play a bigger role?
&gt; 
&gt; Out of the 10 countries in Southeast Asia, nine have an Indic base. Only one has a Sinic base, which is Vietnam. So, historically, Southeast Asia has been closer to India than it has been to China. But today, if you look at the trade between India and Southeast Asia and China and Southeast Asia, I think India is so far behind, it’s frightening. Let me give you one statistic to illustrate why Southeast Asia is important. In the year 2000, US trade with Asean was $135 billion, which was more than three times China’s trade with Asean, which was only $40 billion. By last year, US trade grew to around $440 billion, which is a big increase. But China’s trade with Asean grew from $40 billion to $975 billion. So, by opening ourselves (Asean) up to trade, we are growing and benefiting. I think India should ask itself what more it can do with Southeast Asia. Europe represents the past, America represents the present and Asia represents the future, especially East Asia and Southeast Asia. But somehow in Delhi, people find it difficult to pay attention to Southeast Asia. They see it like a backyard. They don’t see it as a place where the future growth potential is.
&gt; 
&gt; ## You say India and China will benefit and have an interest in seeing a multipolar world. But India seems to have aligned more with the US against China. How do you see this development?
&gt; 
&gt; I’m acutely aware that relations between India and China are very difficult, especially after the clashes in June 2020 at the border. But I’m confident that they will be able to manage this relationship. And it’s very clear that even though India is moving closer to the United States, India will never become an ally of the United States, like the UK or Japan or Australia. I think India is big enough to emerge as an independent pole and it’d be good for India because many of the countries in the Global South actually would like independent poles to balance the big powers. So, there is a geopolitical opportunity for India. And there are also some global issues on which China and India see eye to eye. On climate change, for example, India and China face similar pressure from the West. So, it’s a much more complex picture and not simply black and white that India will go with the US against China.
&gt; 
&gt; ## The mood in India towards China has become substantially negative in recent years. Can the two sides resolve their differences?
&gt; 
&gt; I’ve been studying geopolitics for 52 years now, since I joined the (Singapore) foreign ministry in 1971. And one of the cardinal rules of geopolitics is that the party that becomes emotional is the party that loses. Because, in geopolitics, you’ve got to be cool, cold, calculating and cunning, and in India, the big danger is Indians like me get very emotional. And in geopolitics, if you get emotional, then you’re losing the battle. So, it’s important for Indians to sit back and do some cold calculations. Where do India’s better interests lie? The two choices are not to be either a lackey or an enemy. You have lots of positions in the middle which can be very friendly, and yet have some differences of view. I’m aware that what happened in June 2020 was very traumatic. I will also say it was more traumatic for India than for China. One fact that Indians find difficult to accept is that while China looms very large in the Indian imagination, if you go to China, they never talk about India. That’s not surprising, because, at the end of the day, the Chinese GNP (gross national product) is five-and-a-half times the size of Indian GNP. So, I think I can understand why India wants to be treated as an equal China and frankly, if China was wise, it should reach India as an equal. But you can’t deny the disparity in economies.
&gt; 
&gt;  So, I think you have to allow the emotions to run for one or two years, but my sense is that I think there was a statement from China and India where they’ve committed to preserving peace and tranquility right at the border. And I think that should be doable because at the end of the day, as you know, even though China claims Arunachal Pradesh and India claims Aksai Chin, the Chinese leaders have twice proposed that let’s stay with the status quo. Zhou Enlai proposed this to prime minister Jawaharlal Nehru. Unfortunately, prime minister Nehru didn’t accept it and then Mr Deng Xiaoping proposed it to prime minister Rajiv Gandhi, who also didn’t accept it. But at the end of the day, that will be the solution. China will never get Arunachal Pradesh, India will never get Aksai China. Everyone knows what the obvious solution is. But you need strong leaders to bring it about right.
&gt; 
&gt;  
&gt; 
&gt;  
&gt; 
&gt;  
&gt; 
&gt;  Catch all the [Business News](https://www.livemint.com/), [Market News](https://www.livemint.com/market), [Breaking News](https://www.livemint.com/latest-news) Events and [Latest News](https://www.livemint.com/latest-news) Updates on Live Mint. Download The [Mint News App](https://www.livemint.com/apps) to get Daily Market Updates.
&gt; 
&gt; 
&gt; 
&gt; more

  
  
  
- - - - - -

[Maintainer](https://www.reddit.com/user/urielsalis) | [Creator](https://www.reddit.com/user/subtepass) | [Source Code](https://github.com/urielsalis/empleadoEstatalBot)

empleadoEstatalBot

It’s a tough thing to do because India competes much more with SEA than China does with either. Manufacturing is moving out of China to SEA and India, so both are fighting for that business. China is moving up the value chain given their overall improvements so has less of a need for a lot of factories than before.

woolcoat

The pleas of SE Asian diplomats have been the same of India for the last 30-40 years. They desire attention from India but we are least bothered.

Trade is but one lens - we are ignoring so much history - their cultures are derived from India, as far as Philippines and we've done little to keep the connection alive.

There's not one SE Asian language taught as a foreign language at any of the central universities - JNU, EFLU etc.

JNU only teaches Arabic, Chinese, French, German, Japanese, Korean, Persian, Russian and Spanish. Even Chinese is a late addition to some of the other Central universities.

There's much potential for trade and much else besides.

Just more than six times? Well that's unexpected. 

I was expecting some more than 10 times India's trade.

Turdedinfinitely

I mean, their economy is literally like 6x ours. It's to be expected. Goal is to improve ourselves and that will naturally improve our exports.

Rajesh_Kulkarni

What's so strange about that? India should realize that it is in competition with Southeast Asia in the international trading system.

bjran8888

business is looked down in India. Parents want govt jobs, everyone spitting on industrialists. Basically Indians lacks mindset for business and trade.

Nal_Neel

India is reluctant to sign free trade agreements for fear of more efficient economies increasing exports to India and impacting its less efficient manufacturing companies.

nearmsp

https://preview.redd.it/lp4j6e8le41e1.jpeg?width=1290&amp;format=pjpg&amp;auto=webp&amp;s=ddd1f5f232912ab1f2a6683121b59f2e15350d8f

AlternativeAd7151

In becoming large trade partners with Europe? Probably not, since the EU has been delaying its deal with Mercosur for 2 decades for no good reason. 

In the US becoming a larger trade partner than China? Probably yes. Manufacturing is becoming more expensive in China, so our imports will probably shift towards other asian countries and soon enough Africa.

HzPips

I think the trending is quite the opposite here right now. EU is completely engaged in USA world policies, and the different governments of Latin America are not (some are, but not close to a consensus) and frankly have no reason to do so.

brazilian_liliger

probably not. The EU continues to view LATAM as colonial material and is trying to apply an extractionist economy to the region. it is currently trying to restrict car exports from Mexico instead of creating a free trade zone. it is more feasible for LATAM to join as a large free trade zone and initiate positive feedback although the challenges for Brazil and Mexico are to help the other countries develop faster by creating an import/export balance with the smaller economies in the region without destroying them in the process and of course, for some to understand that expecting the US to save them economically is a naive dream.

VajraXL

I hope not, EU treated Brazil as inferior and underdeveloped

okcybervik

No, because this is a trade war we have nothing to do with it.

KonoGeraltDa

Saltimbancos

EU just taking bad decisions. Depends on Russia for gas, and make a war with them, depends on the US knowing that Trump is a big risk for them, ban and intend to make economic war with China. They just can shot themself and make it less painful.

They try to make a trade agreement with mercosur, but France is blocking it for more than 20 years now

Cerulean-Knight

We will trade with whoever suits us best during the period we are living in. In this case China, but hey it could be the United States tomorrow if that suits us.

Signs25

Quite the opposite I believe. China has recently become latinoamerica's biggest partner and the difference is probably just going to increase after Trump's economic policies against China and Latin America. That's of course for the rest of latam, unfortunately we, in Guatemala, will have to stick with Taiwan for at least 4 more years (I just hope they don't try something funny this time).

Trump's policies just show why latam doesn't have anything to gain from increasing their tradings with the US. Imagine if 60% of your exports go to the US but then a president comes of and wants to duplicate the tariffs just because you didn't do what they asked.

Salt_Winter5888

If we look at trade numbers, Latin America as a region is almost on par with the EU as a trading partner for the U.S., but that's mostly thanks to Mexico, which dominates with about 70% of the region's trade with the U.S.

On the other hand, when we compare Latin America’s trade with the EU to U.S.-EU trade, Latin America is far behind...around three times less.

This shows how the U.S. and EU are much more interconnected economically, while Latin America’s trade with the EU is still growing but mostly focused on raw materials and agriculture.

I think Europe is quite far away and hasn't seen all the potential in Latinamerica yet.

gabrielbabb

I hope not. I hope we stop being exploited for our raw goods while you make the profit from the manufacturing

Dramatic-Border3549

Mexico is already the biggest trade partner of the US, I’m guessing this is taking into consideration every single country member of the EU combined.

GayoMagno

I dont think think most Latin nations are gonna have much of a choice in the future by the way the U.S and Europe are investing away from the China

Scrooge-McMet

I think it's hard to make a good comparison because the EU is itself a single market, but that not the case for Latin America.

There have been talks to create a free-trade agreement between Mercosur (Argentina, Brazil, Paraguay, and Uruguay) and the EU, but it's proved difficult. French farmers, for example, are worried of losing ground from South American exports.

Carolina__034j

I hope not. Europe is dying faster because of their decision to remain US's puppets.

khantaichou

Ideally, yes, realistically, no.

First and foremost, we mostly have "raw" commodities. I mean, is not all we have and not every country is the same but we are not truly developed economies. That would be all fine if we were a country like say china or something but we can't really compete with industrialized asian nations nor with them in terms of cost of labour, not withotu taking a step back. So while we still have a place, the wiggle room is not that big afaik (always correct me if im wrong)

Secondly, while we could definitely compete AND grow at the same time with products that have more value, and services, realistically it would require something like the EU here in latam to spur us fast towards said development. But that is unlikely to happen.

So, the US has an insane level of resources, manufacturing AND services and the home advantage of politics (incl. military) and economics (markets and currency), while we are too expensive to be the cheap end and develop and too undeveloped to compete at the same league

Add to that that europe has been very protectionist about deals with us and, well.... yeah, no.

As for those mentioning BRICS, even if it did pan out, china and india are already cheap manufacturers and producers, so the wiggle room its also limited. Russia I dont know but they will loose more and more relevance if there is no coup there, and instability does not bring out investments either so they might not be in a position to do so. Brazil its already big and on a similar place or better than most other latam countries so... I dont quite see it; Once again, the only ption I truly see, is making a union. A well designed one with a primary focus on economics

simonbleu

At least for Colombia, the US is already our largest trading partner.

Fade1998

I think trading with USA brings prosperity. Fire me to negatives but that's the truth. Look at every country that defies the empire: poor and isolated. It's better to go on the winning ship. We just need to be smart on the trading conditions.

Big-Hawk8126

They can only dream the idiotic Latin American leaders would make such a decision.

edit: lmao all the communist brazilians from r/brasildob here are so mad

One particular gem. among the many in the article

&gt; Decide on how many years you're going to invest the money. Divide the  time horizon (in years) by 3 or 5, and you'll get a number.   Select debt funds whose Average Maturity is (approximately) equal to that number. That's the simplest to do it. 

This is so important. You get so much of lazy advice that asks you to match the duration with the horizon. That is so hare-brained.   Your suggestion is so much better.

srinivesh

This is a fantastic post, thank you for taking the time to write this down!

One question - i have come across two types of perpetual bonds AT1 bonds and tier II bonds. I understand yes bank was an AT1 bond, while Lakshmi vilas had tier 2 bonds. What is the difference between these perpetual bonds? Both of them can be written down, but while reviewing some mutual funds I got the impression it is more difficult to write down tier 2 bonds (ie tier 2 safe than at1). Is that correct?

visiblemogambo

Well written and very comprehensive, thanks for sharing!

zuniper7

One more thing to add -- Long Term rating uses AAA/AA/.. terminology and Short Term rating uses A1/A2/... 

Based on ICRA's website the mapping between these two is a bit *non-obvious*

* Long Term **AAA/AA+/AA/AA-** map to Short Term **A1+** (that's a big range)
* Long Term **A+/A** map to Short Term **A1**
* It's only at **A-/BBB+** level that **A2** comes in
* ..

Of course, it's still an indicative mapping, but it's good to be aware of this

Sauce

* [Screenshot for full mapping](https://imgur.com/d82BSGb)
* [PDF Source](https://www.icra.in/Content/PDF/mapping.pdf)
* [ICRA Credit Rating Scale webpage](https://www.icra.in/Rating/CreditRatingScale)

abovequator

RealStax

Good post OP, very informative for an investment newb like me. Who knew something called Overnight Funds existed..

diadelph

jamespectre

Thank you sooo much! This will help me a lot. Thank you for explaining terms in Indian context. Please do not delete this. i will be returning to this again.

Well written but you can add a section on NCDs also. Some practical things which must be highlighted:

\- Be careful of state government, municipal corporation bonds. Better to go with Central govt or RBI bonds.

\- Tier 1 bonds of Yes Bank was wiped off. Tier 2. bonds of Laxmi Vilas Bank was wiped off. All this happened in 2020. These bonds were mis-sold as fixed deposit alternative. Now SEBI has limited that only institutions can buy these kind of perpetual bonds 

\- DHFL, Reliance Home Finance and lot of other examples which were AAA rated and are now in bankruptcy.

juniorbuffett

Thank you very much for this article 🙏. The timing is perfect haha.

rahulmanghnani

rakshu_kr

The formatting and explanations here are worth including into the Wiki. Great work

kaikemy

TheMarineEngr

Nearby-Society

Are debt etf a good choice for regular investment? Like bharat bond etf

mrnerdy59

Why did only Franklin UST fund got affected but not others?

zandublam

One important point around investing in bonds - especially important in today's low interest rate situation is the call option on bonds. This is a big risk factor to consider when you want to buy a bond.

For example, the SBI 9.99% bonds which are very popular have a call option in the third week of March; should they call them back, your actual YTM will be much lower than what you would have thought

[https://www.indiabondinfo.nsdl.com/](https://www.indiabondinfo.nsdl.com/) is a great site to look at bond details in a single place.

The Corporate announcements section on the BSE website on the ISIN page also aggregates announcements about record dates, interest payments etc

offensive-owl

Posts like these make Reddit worthwhile. Thank you.

sevmumra

How does one go about investing in a bond?? Is it possible online? Through any website? Or any offline options? I assume banks like HDFC, ICICI would offer options?

danluiz915

Bukuna3

Thank you. I like it. Kudos to your effort.

bunnywise

I have not read the post thoroughly. On a skim, it looks great. Thanks for putting this together.

Please see if you can also refer to this article series in freefincal on debt mutual funds - [https://freefincal.com/debt-mutual-fund-categories-explained/](https://freefincal.com/debt-mutual-fund-categories-explained/)

Get in floating bonds when interest are about to go up and in long term gilt while int rate go down. That much is timing

001forge

Thank you so much for this article! I have so many questions :)

- The India’s bond rating in international rating seems poor BBB-. Does that mean investing them in is risky?
- How do I invest in a convertible bond?
- How do I find mutual funds which invest in convertible bonds? 
- How do I invest in SGB? Is it same as investing in a Gold ETF? 
- What are secondary markets, how do I buy SGB from them?
- How do I find debt mutual funds which have invested in SGB
- Are overnight funds safer than liquid?
- What are arbitrage funds? What are the risks with arbitrage funds? 
- In the last part you mentioned liquid funds for emergency. Those provide with option of instant withdrawal. Aren’t those risky since in case of Corona like situation, a lot of people would easily withdraw and it would cause same Franklin like scenario?

In terms of returns, generally, liquid funds give more returns than overnight funds?

&gt; Whenever there's a sudden change in the interest rates, bond prices are affected which causes debt fund NAVs to plummet or soar. Even liquid funds are not safe from interest rate risk. When RBI suddenly increased the interest rate in 2013, liquid funds 'fell'. Although they'll recover in a few weeks, investors will be at a loss if they redeem the money before the NAV recovers.

&gt; How to mitigate interest rate risk : Invest in debt funds with lower Modified Duration (like UST funds, Short Term funds). Those funds will have lower NAV fluctuation because of interest rate changes. To completely avoid interest rate risk, invest in Overnight funds.

in the previous para you said 'Even liquid funds are not safe from interest rate risk' and in the next you mentioned about UST and ST funds. Liquid funds have less duration than UST right? wouldn't they less risky than UST with interest rate fluctuation?

This was an amazing post and lots of educational content. Is there a book you recommend to read and learn about Debt instruments?

Late to the forum but given in this scenario of low interest rate, with the expectation of rates to increase (maybe in 3 months or 24) it should make sense to invest in floating rate bond right?

So the advertising of debt funds as an alternative to fixed deposits is misleading.

HSPq

How do the debt funds transfer the interest earned on the holdings? I have never received any dividend from a debt fund nor has my holding increased anytime?

rohan2196

A great article on choosing between FD and Short term Debt Mutual Funds - [https://www.valueresearchonline.com/stories/53590/fd-vs-short-duration-funds-what-to-choose-in-the-no-indexation-era?utm\_source=2023-12-04-insight&amp;utm\_medium=email&amp;utm\_campaign=insight&amp;utm\_content=fd-vs-short-duration-funds-what-to-choose-in-the-no-indexation-era&amp;utm\_term=fundwire](https://www.valueresearchonline.com/stories/53590/fd-vs-short-duration-funds-what-to-choose-in-the-no-indexation-era?utm_source=2023-12-04-insight&amp;utm_medium=email&amp;utm_campaign=insight&amp;utm_content=fd-vs-short-duration-funds-what-to-choose-in-the-no-indexation-era&amp;utm_term=fundwire)

narayanang

SS: As the foreign ministers of India and Canada connected publicly on Sunday, the first time in over a year, it’s yet another indication that the Government of Prime Minister Mark Carney could make a genuine attempt to repair the relationship between the two countries.

Canada’s Minister of Foreign Affairs Anita Anand spoke to External Affairs Minister S Jaishankar on Sunday, and later, in a post on X, described the discussion as “productive”.

She thanked Jaishankar “for the productive discussion today on strengthening Canada–India ties, deepening our economic cooperation, and advancing shared priorities. I look forward to continuing our work together.”

In response, Jaishankar said, “Discussed the prospects of India-Canada ties. Wished her a very successful tenure.” He said he appreciated the telecon with his Canadian counterpart.

This is the first formal contact between the Foreign Ministers of the two countries since February 2024 when Anand’s predecessor counterpart Melanie Joly met Jaishankar on the sidelines of the Munich Security Conference in Germany.

Then_Reception38

This will most likely end with a verbal commitment by Canada to respect Indian sovereignty and nothing from India concerning foreign interference of Canadian politics.

Therefore, it may seem like India received the better end of the reset. However, I suspect the Canadian verbal commitment wouldn't actually mean much &amp; that there would be a future Khalistani incident connected to or defended by Canadian politicians, protected under their free speech laws.

Still_There3603

I guess they both have expansionist neighbors.

Vdasun-8412

My theory is US deep state stalled India-Canada ties because they were worried India and Canada would use proposed India-Canada trade deal to send items to US decreasing US leverage in India-US trade talks.Now, I expect India-Canada trade deal only after India-US trade deal concludes.

topgun047

Mean-Razzmatazz-4886

Prospects of a trade deal between India and the US are expected, with discussions aiming to double bilateral trade to $500 billion by 2030, indicating economic benefits and strengthened ties.

India-US Trade Deal Prospects

Why This Matters

Public Sentiment Summary

Highlighted Comments

Parties Involved

What the people want