I’m honestly not much of a movie person. However, because I regularly talk to my son about markets, finance, and macroeconomics, he insisted we sit down and watch Governor: The Silent Saviour starring Manoj Bajpayee.
I’m glad I did. Hence just sharing my thoughts here
The film shows how close India came to total economic collapse in 1990–1991. Manoj Bajpayee plays the RBI Governor dealing with empty government coffers, political chaos, and a ticking clock. Instead of standard action scenes, the tension comes from the harsh reality: having to secretly pledge India’s gold reserves to save the nation from sovereign default.
| Fact | Details |
|---|---|
| Forex Reserves | Dropped to just ~$1.2 Billion — barely enough to cover 2 to 3 weeks of essential imports (crude oil and medicine). |
| Pledging Gold | India had to secretly airlift ~67 tonnes of physical gold to the Bank of England and UBS in Switzerland as loan collateral. |
| Why It Happened | High fiscal debt, political instability, and the Gulf War spiking oil prices while cutting remittance inflows. |
The ending is powerful. Pledging the gold felt like a national humiliation at the time, but it bought the country critical breathing room. It forced the 1991 economic reforms that opened up our economy. India eventually repaid the loans, brought back every gram of gold, and built a massive financial shield.
Growing up, I never imagined an entire country could actually go bankrupt. But when foreign currency runs dry, everything halts: no fuel imports, no medicine, and the currency crashes overnight.
Now, henceforth whenever I read headlines about India increasing its foreign exchange buffers or RBI buying more gold reserves, I would definitely breathe a sigh of relief i guess. It isn’t just dry data it is national survival insurance against external shocks.
Just happen to check few countries go under bankruptcy and their reasons behind it.
3 Countries That Actually Went Bankrupt
| Country | Why It Happened | What Happened Next |
|---|---|---|
 Sri Lanka (2022) |
Heavy foreign debt for unviable projects plus an overnight ban on chemical fertilizers that hurt farming and tea exports. | Ran out of forex for fuel, food, and medicine. Rolling blackouts, massive public unrest, and sovereign default followed. |
 Greece (2015) |
Excessive government spending, poor tax collection, and disguised deficit figures for years. | Defaulted on IMF loans. Banks shut down, ATM withdrawals were capped at €60/day, and severe austerity hit citizens. |
 Argentina (2001) |
Accumulation of massive foreign debt while artificially fixing the Argentine Peso 1:1 against the US Dollar. | Run on banks (Corralito ), frozen bank accounts, default on $100B, and 5 presidents resigning in two weeks. |
Now as of Today’s condition i just asked chatgpt what are potential things to focus on and its solutions and really couldnt find promising answers.
We have our forex (~$700B+) and gold reserves look secure. However these below topics still remain a point of major concern.
- Strategic Petroleum Reserves (SPR): India holds only ~9–10 days of emergency crude oil underground despite importing over 85% of its oil needs.
- Groundwater Tables: Crucial agricultural zones and tier-1 cities are draining groundwater aquifers at unsustainable rates—a resource money cannot easily import during prolonged droughts.
- Critical Minerals & Rare Earths: Minimal domestic reserves of refined lithium, cobalt, and rare earth elements necessary for future tech and energy transitions.
What do you think can be done here how can it be preserved or increased?
