June 2019 \ Business & Investment \ BUSINESS AND GOVERNANCE
India’s disturbing consumption slowdown pattern: Kotak

Insufficient income growth may have pushed the Indian ...

The report noted that auto sales volumes saw a slowdown from the second half of the last fiscal and in general consumption, based on volumes of consumer staple companies, from the fourth quarter. A combination of monetary stimulus and structural reforms may help revive growth over time, but India’s high and “persistent fiscal deficit, faltering tax revenues and broken business models in agriculture and infrastructure rules out further fiscal stimulus”, the report said.

While the liquidity problems of non-banking finance companies (NBFCs) and solvency challenges are still a concern, the improvement in the balance sheets of banks can support overall credit growth by offsetting the NBFCs’ likely lower loan disbursement, it added.




Related News.
Comments.