Sunny,
completely disagree... the cost of borrowing from foreign institutions is very low compared to our internal cost of borrowing... so it's an advantage... the loans taken from ADB or other foreign institutions are at very low interest rate... if utilised properly, it could lead to a very prosperous India... but the political parties ruin this opportunity by... you know what... corruption... at every level...
the rise in inflation is not only due to the foreign borrowing... look at the pay hikes given to the govt. employees... even the IT/ITEs cos. as well as some other industries are also paying out good perks/incentives and all... so it was bound to happen... it would take a lot of time... for moderation in inflation... Moreover the avg. inflation of our country for the past 50 years was not less than 7%...