The chairman of the $20 billion Mahindra Group, Anand Mahindra, was exuberant in his praise for the then Reserve Bank of India (RBI) Governor Raghuram Rajan’s first ever interest rate cut on January 14, 2015.
The needs and priorities of much poorer Bihar or Madhya Pradesh will be vastly different from that of, say, Kerala or Tamil Nadu.
Economic theory suggests that we should observe convergence in income per capita amongcountries or within regions in a large federal country.
India is the only large country that is experiencing an economic divergence among its States.
The previous “Noise to Signal” column titled The Silent Role of Credit Ratings in India’s Bad Loan Crisis highlighted ratings to all the corporates that indulged in heavy borrowing during the years 2010-2014.
