Growing Economy
How does a family grow (financially and not in any other way :D)? A family grows with their income resulting increase in their expenditure.
Similarly a country's growth is defined by its consumption or income levels. India has all the signs for a good to go economy.
Looking at the statistics, India has become an overall $ 2 trillion economy surpassing France in 2017-18. It is likely to attain fifth position by replacing U.K in coming years.
Even though IMF has cut down India's growth forecast to 7.3% from 7.5% in the current fiscal year it is still the fastest growing economy ahead of China which is still at 6.6%.
The growing opportunities in the country for the foreign investors are leading indicators for the positive sign of growth.
Bad Loans Scenario
Coming back to the same family, what if they have unbearable loans which are piling up day by day.
India has the world's second worst bad loan ratio after Italy.
Looking at the RBI data, 90% of the bad loans could not be recovered during FY 14-15 to FY 17-18.
Digging deep into it, the amount of loans written off by the public sector banks are 2.41 lac crores.
On the top of that RBI paints a gloomy picture by saying that Gross NPA ratio of banks is likely to rise by the end of the current fiscal year.
Will the family still grow in the same manner?
Amidst all the bank crisis and stressed debt choking our financial system, the country is still positive in terms of growth. The reasons can be summed down to mainly few points :
How does a family grow (financially and not in any other way :D)? A family grows with their income resulting increase in their expenditure.
Similarly a country's growth is defined by its consumption or income levels. India has all the signs for a good to go economy.
Looking at the statistics, India has become an overall $ 2 trillion economy surpassing France in 2017-18. It is likely to attain fifth position by replacing U.K in coming years.
Even though IMF has cut down India's growth forecast to 7.3% from 7.5% in the current fiscal year it is still the fastest growing economy ahead of China which is still at 6.6%.
The growing opportunities in the country for the foreign investors are leading indicators for the positive sign of growth.
Bad Loans Scenario
Coming back to the same family, what if they have unbearable loans which are piling up day by day.
India has the world's second worst bad loan ratio after Italy.
Looking at the RBI data, 90% of the bad loans could not be recovered during FY 14-15 to FY 17-18.
Digging deep into it, the amount of loans written off by the public sector banks are 2.41 lac crores.
On the top of that RBI paints a gloomy picture by saying that Gross NPA ratio of banks is likely to rise by the end of the current fiscal year.
Will the family still grow in the same manner?
Amidst all the bank crisis and stressed debt choking our financial system, the country is still positive in terms of growth. The reasons can be summed down to mainly few points :
- Private sector is least leveraged and provide good return on investments.
- Government expenditure on the economy is also adding up to the growth.
- The sentiments of the public is quiet high which leads to stock market being bullish and so growing economy.
- Court's measure of appointing Resolution Professionals under India's Bankruptcy legislation for helping bankrupt companies to either liquidate or revive.
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