Surge of easy credit and loans is it a pre cursor for economy crash in India?

68.7% Debt/GDP ratio is very safe. The most potent worry at this point in time is March, 2019 when Brexit happens, very likely without a deal with EU. The impact on UK Financial markets would be huge and because London is the 2nd largest financial centre in the world, its fallout would not leave any country unscathed. This could be another Lehman moment, only much larger and much worse because major world economies - US, EU, China among them - have already exhausted monetary space post 2008 to deal with a crisis of this magnitude. more  

Like any other corporate out there our government has become too big, and what do corporate do when you get too big and start losing money. You look back at your operating cost and you start cutting every small cost, over government needs to do some serious cost cutting and also down sizing we don't need that many government and bureaucratic organizations. We need a leaner more cost effective government organization which eases on the operating costs and also makes it easier to monitor activities, government should be held liable when they make bad decisions like spending more than they can make and there should be a law in terms of conflict of interest where government tenders should in any way not go to a known person or company which is even remotely associated with the ministers or the governance bodies. Our political infrastructure needs a serious overhauling, and that should start with some changes to the qualification and disqualification criteria for being a politician. The rules were written 70 years ago, though I do not have the facts as to if they have been amended since, if you read them yourself there is no set qualification criteria for the candidates themselves and the other qualification criteria mentioned I seriously doubt are being followed though I am sure they would have covered their bases on paper. I think that is the first step to start cleaning up this mess they have made over the course of last 70 years. It ticks me off when I meet or read about people who have been wrongly charged and spent unlawful jail time and cannot come back to society and get a decent job, if one goes to a corporate for a job a thorough background verification is done and even if a remote association to any unlawful activities is identified it is a red flag, but there are no such verification for a politician they could have committed hundreds of crimes but because they have the power to shut some one down or even get them killed when push comes to shove they never get incriminated and thus use their power to force people living in fear and poverty to not only vote for them but silently suffer while these ministers continue to hoard more money and more power. If government really wants to curb black money and rid our country of unlawful activities and scams this is where they need to start, it should be mandatory for a politician to have a clean chit from an independent body who vets a candidate before nominating and should also be held accountable for any wrong doings of politicians who were given a green signal by them. Probably a group of high ranking military and intelligence officers should be the panel for this body who must have total insulation from threat and bribery of these politicians. more  

It is not worth discussing over split milk; but should focus on what is to be done from now on to strengthen the Indian Economy. First, the government should accept to hear views of reputed economists and not just those who defend what is being told by the Government. Rajan did a great job as RBI Governor and it, in fact, led to identification of NPAs and to address it through Insolvency and Bankruptcy law. His focus on Inflation was an eye opener. Thank god, he did not allow the government to interfere with it's working and focus. May be the Chief Economic advisor left his position prematurely, as he felt frustrated. Neeti Ayog has been a failure as it is not giving out independent thoughts for bettering the economy. Unfortunately, we do not have a sound economist and financial person at the helm of the financial ministry. Religion and political philosophy should not rule economic issues. An example, is the leather industry. Do we need big statues? Ease of doing business is still a dream. Agriculture is not getting the required focus. Promote small hydro-electrical cum irrigation/drinking water projects. Diesel consumption in road transport, tractor and railways should be gradually reduced by focusing on Electric traction. Encourage public transport involving private sector or privatize public transport for better efficiency. Encourage in investment in solar and wind energy. RBI should strictly control borrowing of state governments where fiscal discipline is lacking. Downsize governments and abolish large number of irrelevant boards which is only a parking place for politicians. Both central and state governments are involved in the above exercises. more  

We had an economist as PM and we were complaining about his economic policies and we have elected another PM who has advisors who only want to keep the people always insecure. They toggle between yes and no decisions every hour and confuse the people. How will businesses decide what will be profitable to them and how are common people going to decide where they will invest? Unless there is a stable economic and taxation policy for a minimum period of atleast 5 years can the economy be revived. People can decide their options and the economy will boom. But people will definitely find a route to avoid taxes but the risk is unavoidable in a crisis like this where the world biggest economies are going against each other like never before. more  

Home equity loan is a big thing in Canada and USA. Essentially, you bought your house for $120,000, its value has gone up to $480,000, and you still owe about $105,000 on it. However, you would qualify for a loan of around $360,000 overall or a new equity loan of $255,000 leaving your mortgage intact. People are taking advantage of this home equity loan facility and spending. The country produces this extra cash by printing money. Economists take opposing views on the borrowings created by home equity loans and there is no historical precedent to it in a rational market. more