Inside the Finances of Indian States: A Reality Check
So what is camouflaged by the robustness of corporate situation, and well capitalised banks is the persistently stressed Indian households whose income constitute 78 per cent of India’s GDP. The other dimension of this stress is that the burden of fiscal consolidation from a high level of public debt, estimated at ₹270 trillion or 90 per cent of
... See moreDhananjay Sinha • Are Rates Stressful or Are We Barking Up the Wrong Tree?
For several years before the pandemic, the Indian banking sector was embroiled in a crisis that manifested in the form of rapidly rising non-performing assets (NPAs) on the balance sheets of banks. NPAs were triggered by large-scale defaults in the corporate sector, with the bulk being reflected on the balance sheets of inadequately capitalised
... See moreIdeas For India • The Silent Reshaping of India’s Credit Landscape
In practice, except for the revenue deficit grants, the actual flow of funds remained generally less than recommended amounts by the end of the award period, which indicates that the revenue deficit grants were predictable and assured while others were not. Some conditional grants for local governments faced challenges of conditionalities and
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