The Concept of Sovereign Insolvency with Special Focus on India

Can a country go bankrupt? The past has been dynamic with world witnessing many countries falling off grace. Why a country goes bankrupt? What is the economics and politics behind the concept of "sovereign bankruptcy"? How do countries protect themselves against sovereign bankruptcy? Which all countries in the past went bankrupt and why did they go bankrupt? Is India moving towards bankruptcy and if so, then why? What measures India can take to safeguard itself from falling off grace? What future beholds for India so far as "sovereign bankruptcy" is concerned?The Researcher in this research paper attempts to answer some of these fundamental questions. Apart from this the researcher attempts to explain the efficacy of some fundamental terms such as "current account deficit to GDP ratio", "fiscal deficit to GDP ratio" and "debt to GDP ratio".