* Subramanian had flagged the problem of debt accumulated by private corporates becoming NPA of banks back in December 2014
* At that time, he was CEA to the Narendra Modi government
NEW DELHI: India is facing a "Great Slowdown" with its economy headed for intensive care unit primarily due to a "second wave" of the twin balance sheet crisis at banks, former Chief Economic Adviser Arvind Subramanian has said.
Subramanian, who was Modi government’s first chief economic adviser but quit in August last year, in new paper co-authored with the former head of the International Monetary Fund’s India office Josh Felman said India is facing a "Four Balance Sheet" challenge — comprising banks, infrastructure, plus NBFCs and real estate companies — and is trapped in an adverse interest growth dynamic.
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