IMF Report on Indian Corporates – wakeup call for Government of India

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20 March 2015 

In a series of articles in the run up to the Budget 2015 I had pointed out on the weak financials of the Indian corporate sector. The consequential debilitating impact on the economy, especially in the finances of our nationalised banks, too was explained in these pieces.

Last week the International Monetary Fund published the Indian Country Report [IMF Country Report 15/62 published in March 2015] more or less echoed my views on the depressed state of the Indian Corporate sector. Chapter VIII and IX of the said Report are instructive. Let me summarise the findings of this report for the benefit of the reader.