ISAS Insights

The financial markets in India are under stress due to defaults in several companies and this is affecting the availability of credit for the goods and services sectors. Lenders have become risk averse. At the same time, consumption demand in small towns is growing. There are also new industries and technologies that are attracting investments, thereby providing a fillip to the India economy. However, the new government would have to meet the many challenges to put the economy back on an even keel.