Banks are commercial enterprises and should be allowed to operate accordingly. In principle, separating a commercial decision such as loan recovery from criminal proceedings against wilful defaulters is a step in the right direction
Rajeswari Sengupta writes: By adopting this strategy, India could potentially solve its two most important macroeconomic problems — reducing the large CAD and securing rapid, sustained growth.
Buoyancy in tax revenues next year is uncertain and exports boom caused by pandemic is likely to diminish. In a period of global economic uncertainty, these will put constraints on GDP growth
Rajeswari Sengupta writes: There are serious problems with India’s GDP data. Any analysis of recovery or growth forecast based on this data must be taken with a handful of salt.
If the RBI is too slow to tighten policy and rein in the liquidity it has created, the country could end up facing the kind of inflation crisis that was witnessed in the post-2008 period.
