This refers to T N Ninan's column "Hungry for foreign money" (Weekend Ruminations, December 13). Banks are not lending: is it not because their minds are turned inward on the disturbing non-performing assets? Is it not that there is a lack of demand from small and medium enterprises and real businesses? Is it not that they are reluctant to reduce lending rates? Is it the cheap dollar crowding out or a demand problem? As for inflation, why forget the structural supply (and channel) side constraints completely? Though key bits like oil to milk prices are falling at the source level, it remains to be seen how soon will the final consumer benefit.
And for cheap foreign debt inflow, is it not that India is missing out on a rare window to channelise it into core developmental and infrastructure areas?
With so many moving pieces, the pivot of the problem is hiding elsewhere.
Saravanan G Salem
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