Context: Reserve Bank of India’s (RBI) recent softening of stance to the idea of Indian corporates potentially running banks should result into Opening India Inc to foreign lenders.
Dependence on Foreign Credit:
India’s Bad Loan Economy:
Way Forward:
Conclusion: Fortunately, while India does have a healthy forex reserve amounting to $568 billion, the regulator should allow market access and free price action to take care of the rest.