All posts filed under: Utkarsh Shalla

India’s “Bad Loans” Problem

By: Utkarsh Shalla Will the Modi Government be successful in bringing promised growth? Or is it actually ignoring a more significant structural problem in the economy? When the Narendra Modi led Bharatiya Janata Party (BJP) came into power in April 2014, it was elected in the hopes that the new PM would bring desperately needed economic change to the precarious condition the Indian economy was suffering through. A free falling Rupee, decreasing economic growth and a long list of corruption scandals spurred enough anti-incumbency sentiment for the development and growth focused Modi campaign to sweep into power. However, although the economy has performed well since the past three years, a series of disruptions to led by the controversial November 8th currency ban (or demonetization) and the highly publicized GST (Goods and Services Tax) have changed the national tone about the economy. During the second quarter (April-June) of this year, India grew at 5.7%, the lowest its growth rate has been since the government came into power in 2014. Soon after the RBI, India’s central bank, revealed …