India has been facing serious issues as far as economy is concerned. The growth rate plummeted to 4.5%. Unemployment rate is highest in 45 years
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- Twin balance sheet problem of both banks and business.
- Under capacity utilisation of the corporate sector
- Hangover of the 2009 global financial crisis.
- Late recognition of NPA problem. It was a problem in 2011 itself.
- Current issue of NBFC’s insolvency and them being in debt crisis.
- Long term structural issues: like monetary policy transmission issues, stagnant manufacturing sector, poor performance of agricultural sector etc.
- Informal and unorganised sector badly hit by demonetisation.
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