India pandemic economy Government India

Turning inflows of money into productive capital formation

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growth, rather than of dealing with slower growth. This flies in the face of conventional wisdom and the arguments of those worried about hysteresis.

In my view, corporate deleveraging in India and the scope for copious capital inflows (already evident) from around the world offer room for optimism.

Recent monetary policy meetings in America and in Europe only reinforce this prospect.In this regard, I would like to cite an industrialist friend of mine.

At the beginning of the covid pandemic, he thought that consolidation would take place in his textiles industry and others, and that unviable factories would exit.

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