As the era of easy money ends, the gap between the ability to borrow and the credibility to do so will define fiscal resilience. India still has the chance to strengthen both.
To sustain momentum, India must continue focusing on structural reforms, particularly in land, labour & logistics, while nurturing human capital through education & skilling initiatives.
'It shows that the risk of sovereign default, which was quite omnipotent just a couple of years ago, is in the past,' said Ali Farid Khwaja, chairman at KT Bank Pakistan.
India pointed out that Pakistan has been a “prolonged borrower from the IMF, with a very poor track record of implementation and of adherence to the IMF’s program conditions”.
UCBs accounted for 1.8% of total industry credit in September 2025—down from 2.2% five yrs ago—showing that they are losing ground to faster PSU banks.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
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