Analysts point out that slowdown from last quarter has intensified due to the combination of long-term slowdown and temporary shock factors like demonetisation and GST.
Rajesh Kumar Singh
While the loans are costlier than those offered by banks, which charge around 12% on average, they are processed more quickly and require little paperwork.
The Goods and Services Tax (GST) has missed several launch dates. On Saturday, Finance Minister Arun Jaitley said the measure is on track for a rollout from July 1 with the bills set to be discussed in parliament after it reconvenes next week.
While opinions vary on how long the disruptions caused by Modi’s crackdown on untaxed and illicit wealth will last, there is near unanimity among economists that Asia’s third-largest economy needs a helping hand.