Biggest winner of Modi’s loan-in-59-minutes plan for small companies is an Ahmedabad fintech startup

On November 2, Prime Minister Narendra Modi made a slew of announcements aimed at reviving India’s faltering micro, small and medium enterprises. One of these was about a dedicated digital platform – http://www.psbloansin59minutes.com – to enable them to access loans of upto Rs 1 crore in just 59 minutes. Unlike their larger counterparts, India’s smaller […]

Arun Jaitley is being disingenuous in blaming RBI for the troubles of India’s small and medium firms

What India’s Finance Minister says… The finance minister this week criticised the central bank for failing to check indiscriminate bank lending from 2008 to 2014 which has now ripened into a bad loan crisis. The attack was accompanied by the government invoking never-used powers under the Reserve Bank Act to issue directions to the bank’s […]

India’s curious inflexibility in trying to fix its bad loan crisis is leading to unforeseen problems

India’s crackdown on companies that have defaulted on loan repayments is reshaping the country’s economy in fundamental ways. As the first three articles in this series detailed, competitive advantage is being tilted towards larger firms because only a handful of buyers is picking up most of the insolvent firms on sale. Between the resulting consolidation […]

India’s proceedings to recover bad debt are reshaping Chhattisgarh’s economy – and politics too

A baton is changing hands in Chhattisgarh. Big companies are entering the state’s steel and power sector, using India’s ongoing insolvency proceedings to buy distressed firms. At the same time, Chhattisgarh’s local steel makers, several of whom entered the power sector in the mid-2000s, are looking beyond these two sectors. Part Three of our series […]