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The economy still has not come out of the debt overhang caused

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The investment cycle in the economy is the biggest challenge at the moment. The economy still has not come out of the debt overhang caused by the debt fuelled investment boom in the infrastructure sector in the initial years of this decade. Although we may not have reached a level that can be called balance sheet recession (meaning value of assets is less than that of liabilities like in Japan during the 1990s), the debt overhang of infrastructure companies coupled with banks high non performing assets (NPAs) has certainly emerged as a major constraint for catalysing the private sector investment in the economy, said Sunil Kumar Sinha, principal economist and director cheap jerseys free shipping, public finance, Ind Ra..

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