This moratorium is like a double whammy for the financiers as it increases the overdue amount and depletes the asset value. This along with falling income generating opportunity of borrowers could be a perfect combination for loan default
Union Budget 2020-21 was announced in the backdrop of a tough economic environment, with high expectations to revive the economy by stimulating investment and boosting consumption. However, it fell short of prevailing high expectations, as the government continued to prefer fiscal consolidation and held growth recovery at bay.
The year 2020 starts with a stumbling economy as GDP growth forecasts nosedive to record lows and the retail inflation is at a 5-year high of 7.35%. The ambition of the Modi government to reach 5 trillion economy by 2020 seems impractical at this current rate. Several changes will be needed in the space of
This budget, presented in the backdrop of a slowing economy, tight liquidity environment, limited fiscal space, and global headwinds in the form of trade-tariff wars, where government's strategy has been to keep the interest rate lower by allowing foreign currency-denominated sovereign debt, which in turn would drive growth through investment.
