Economy in need: ‘Banking’ on Modi
The Bookkeeper is not insulated from the hysteria surrounding the state of the economy off late. As stated in my last article, the hullabaloo is a modicum of truth enveloped by apocalyptic Whatsapp forwards allegedly initiated by the liberal cabal. What is not helping is the insufficient counter from the Right Wing. When the counter argument does come, it hinges on the basis that the economic slowdown is a transitory impact of demonetization (DM). This commentator does not believe it is a transitory effect. This slowdown that has been brewing for a long time is systemic, as indicated by the consistent decline over the past several years in capacity utilization data. Source:https://www.cmie.com/kommon/bin/sr.php?kall=warticle&dt=2017-04-06%2017:38:57&msec=963&ver=pf The demand deficit, as falling capacity utilization suggests, is accompanied by a sharp contraction in the returns on capital employed (ROCE). The ROCE for a sample of Indian corporates has fallen