One of the key factors of the weakening of monetary sovereignty is external debt and it is connected to 3 main factors, which is true for almost all developing countries. First is the absence of food sovereignty, any country that imports a lot of food lacks economic sovereignty.
The second factor is dependence on the external sector for energy sovereignty, like India imports more than 80% of its crude oil requirement, and the third factor is the deficiency in industrial, that is a country that exports low-value goods and imports high-value goods. Now
the problem with India's manufacturing plan is that the country will be just an assembler for the world and importing all high-value content like machines and technology. Now, these three become the main sources of deprecation in the currency of the developing world, and if this
depreciation is left unchecked then it can become the source of sustained inflation. Now to check this depreciation Central Banks in developing countries have to intervene in currency markets and borrow as much as possible to pay for these imports and debt, so these three
conditions completely redirect economic plan to earn as many $ as you can either by tourism or attracting as many foreign investors as possible n this leads to a country to focus more on the needs of foreign investors rather than real domestic economy!
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