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“Clearly, this is not an ordinary slowdown. It is India’s Great Slowdown, where the economy seems headed for the intensive care unit,” Subramanian has said in a draft working paper of the Harvard University’s Centre for International Development.
Subramanian had flagged the TBS problem — of debts accumulated by private corporates becoming non-performing assets (NPA) of banks — back in December 2014, while he was CEA to the Narendra Modi government. In his new paper co-authored with the former head of the International Monetary Fund’s India office Josh Felman, Subramanian, who now teaches at the Harvard Kennedy School, has made a distinction between the original TBS and “TBS-2”.