Modi is being forced to focus on economy after slowest expansion in 5 years. Revitalising lenders is essential to jump-starting investments & spending.
The momentum created in the past has run out of steam, and there is an all-encompassing slowdown because there has been so little reform in the last 15 years.
Better highways mean trucks can carry bigger loads, so demand for trucks is falling. Such improved productivity must be taken into GDP consideration, but is it?
Economists say there are weaknesses in India’s GDP data. But statisticians claim the accusations are based on flawed understanding, saying while GDP has problems, the economists are looking in the wrong places.
A 40% recovery rate – it was 1% in the case of Aircel – still means a loss of about $ 120 billion on the stressed loans of about $ 200 billion. That is multiples of the net worth of the lending banks. It will be very painful for the government to take the losses, by recapitalising the banks to this extent.
A 40% recovery rate – it was 1% in the case of Aircel – still means a loss of about $ 120 billion on the stressed loans of about $ 200 billion. That is multiples of the net worth of the lending banks. It will be very painful for the government to take the losses, by recapitalising the banks to this extent.