India in growth recession, real estate is in deep trouble, says Raghuram Rajan

Updated: Dec 09, 2019, 10:39 IST | Agencies | New Delhi

The crisis among shadow lenders and a build-up of bad loans at banks have curbed lending in the economy. Rajan said the government should desist from cutting personal income tax rates for the middle-class for now

Raghuram Rajan
Raghuram Rajan

New Delhi: Former Reserve Bank of India governor Raghuram Rajan said India is in the midst of a "growth recession" with signs of deep malaise in the Indian economy that is being run through extreme centralisation of power in Prime Minister's Office and powerless ministers.

Penning down his recommendations to help the ailing Indian economy out of the ongoing slowdown in the India Today magazine, he called for reforms to liberalise capital, land and labour markets, and spur investment as well as growth.

He also urged India to join free trade agreements judiciously in order to boost competition and improve domestic efficiency. He said construction, real estate and infrastructure sectors are in "deep trouble" and so are lenders to it like the non-bank finance companies.

The crisis among shadow lenders and a build-up of bad loans at banks have curbed lending in the economy. Rajan said the government should desist from cutting personal income tax rates for the middle-class for now.

Catch up on all the latest Crime, National, International and Hatke news here. Also download the new mid-day Android and iOS apps to get latest updates

This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever

Sign up for all the latest news, top galleries and trending videos from Mid-day.com

Subscribe
NEXT STORY
This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK