Much could go wrong, of course, especially given that so many powerful interests have so much money at stake in the process. That mindset should now be carried over into other parts of the reform agenda. The hope is that India’s state-controlled banks will recover some of their money and that the economy-wide problem of stalled investment and stranded assets might finally begin to shrink. A bankruptcy process that ended with the same bunch of capitalists in control of the same sectors might have saved some banks—and taxpayers—money in the short run. But it wouldn’t have achieved the aim of restoring credibility, whether in state-controlled banks or in troubled infrastructure companies.

Source: Mint November 29, 2017 03:00 UTC