Creation of bad bank is difficult but will be very helpful: Kenneth Rogoff

There is constraining private sector investment while PSBs are carrying lot of bad loans: Rogoff

Kenneth Rogoff, professor of public policy and economics at the Harvard University, tells Dilasha Seth on the sidelines of the Delhi Economics Conclave that public sector banks will need to take a one-time haircut to address non-performing assets (NPAs). Edited excerpts: 

What is your assessment of the Indian economy, amid the slew of policy reforms undertaken recently? What is the top challenge constraining the economy?

My sense is that there has been some slowdown since the very strong periods before the financial crisis. However, the low (crude) oil price is very helpful to India. At the same time, from what