Overall war on bad debt is in the right direction, says Taimur Baig

India's external funding cover ratios are a little better than what they were in 2013

India’s foreign exchange reserves of above $400 billion gives better protection ratios against external threats, but the adequacy is way below compared to other countries in the region. Investors won’t see India in isolation, and therefore it is left to the government and the RBI to formulate better policies to insulate India from portfolio-led volatility, said Taimur Baig, managing director and group chief economist of DBS. In an interview with Anup Roy, Baig says one-day default norm may not be a good idea, but the overall war on bad debt is in the right direction. Edited excerpts:

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