Boost In­vest­ment

The Economic Times - - Companies: Pursuit Of Profit -

Ex­pand­ing to ru­ral mar­kets makes sense. De­mon­eti­sa­tion held back dis­cre­tionary con­sump­tion de­mand and that’s ex­pected to change in the com­ing months. But in­vest­ment is weak. Gross fixed cap­i­tal for­ma­tion has slid. So, in­vest­ment re­vival and ex­ports must grow. But banks are sad­dled with bad loans and com­pa­nies are ham­strung as they can­not ser­vice loans. A swift en­force­ment of the bank­ruptcy code will en­able banks to lend again. Pub­lic in­vest­ment should be stepped up to restart pri­vate in­vest­ment.

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