India’s debt problems weigh on retail and consumption

As Asia’s 3^rd largest economy after China and Japan has slowed to a five-year low G.D.P. growth (+5.8% expected in Q4 2019), banks are strapped for cash and don’t lend. Indian consumers, whose spending makes up more than 65% of India’s economy, have become parsimonious. Unemployment is increasing and disposable incomes are under threat. In the last decade, India accumulated bad debt related to all kinds of projects that were never finished or didn’t find an expected demand.

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