In other words, the money that Indians earn from hard work in outsourcing services and the foreign exchange they send back home is all used to purchase Huaxia products.
But the foreign exchange Indians earn is not only used to purchase Huaxia products; there are other expenditures, such as interest on previously incurred debts.
Therefore, India still owes nearly 100 billion USD in foreign exchange each year, and its current foreign exchange reserves can only last for seven months.
This is also why India's sovereign credit rating is only slightly above junk status.
Because the foreign debt is too large.
A few years ago, to repay the money, Indians had no choice but to extort all foreign-invested enterprises domestically, leading to a decrease in foreign investment, which used to be about 10 billion USD per year, to a little over 300 million USD now.
