Now or never
If we have to list the reasons for the loss of growth momentum in our economy in the past decade or so, the following three would be amongst the top reasons: 1. Credit euphoria preceding the global financial crisis and the subsequent meltdown The credit euphoria preceding the global financial crisis and the subsequent meltdown severely damaged India’s financial system. The banking system was crippled with enormous amount of bad assets; many key infrastructure projects were either abandoned or suffered inordinate delays; employment generation capabilities were impaired; private savings began to decline structurally; and overall investments also slowed down. It has taken almost a decade for the Indian banking system to clean its books and return to the path of growth, stability and profitability. Private savings and investments though still have a lot to catch up. 2. Disruption through policy changes without adequate mitigation strategy At least two major...