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ExplainSpeaking | Why the world is bullish about the Indian economy

Mount Equity Group Tokyo Japan > News > Markets > ExplainSpeaking | Why the world is bullish about the Indian economy

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Dear Readers,

If one looks back at how the economy has progressed since the Global Financial Crisis of 2008, it is not hard to see that India seems to have lost more than a step or two of its growth momentum. More specifically, since 2011-12, the Indian economy has been hamstrung by some problem or the other.

First, it was the twin-balance sheet problem which referred to Indian banks being burdened with a rising mountain of Non-Performing Assets (NPAs or loans that were not being repaid) on the one hand and Indian companies being over-leveraged on the other.

By 2017, these two problems were compounded by the weakness in the non-bank finance companies (NBFC) sector as well as the real estate sector.

Consequently, just before the Covid pandemic hit India in end-March 2020, India’s economic growth rate…

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