All the gains that documents like the Economic Survey point to cannot hide the ugly reality about India’s social infrastructure, employment and human development.
From Janardhan Poojary to Crony Capitalism: India’s Bank Recap Must Be Accompanied by Further Reform
While there are several domestic and international examples of recapitalisation bonds having worked, none of them have prevented further NPAs from piling up.
There was a consensus, members said after the meeting, that there is a slowdown, and the Economic Advisory Council to the Prime Minister will work to find its causes.
Small and medium sized businesses across the country report tumbling sales, undermining job creation and damaging sentiment in industries crucial to Modi’s political powerbase.
Solutions involve either an immediate fiscal or monetary stabilisation policy, or pushing through further supply-side structural reforms.
The 5.7% figure, based largely on data from the corporate sector, does not capture the almost one-third of the economy hit by demonetisation and GST.
Growth slowed to a three-year low of 5.7% in the quarter that ended in June, and finance minister Arun Jaitley has said that the government is looking for ways to speed it up.
More than a fifth of large companies did not earn enough to pay interest on their loans and the pace of new loans fell to the lowest in more than six decades.
At Rs 128807.81 billion, liquidity is now at an all time high. This rise has to be absorbed to keep inflation in check.