India Heading towards Bank Closures and Economic Meltdown
India, the seventh-largest economy in the world, just a few months ago, was the world's fastest-growing major economy.
Now India's economic growth has slowed down. The picture is grim. Companies are witnessing a sharp downturn in sales. Many foreign investors are pulling money out of the Indian stock markets leading to high volatility . The agricultural sector is down .
Unemployment is at its peak.
Bank runs; bank closures leading to restricted lending,
and collapsing institutions.
The Indian financial sector is in big trouble,
and the contagion is starting to bite in the real economy.
The country's car industry has taken a hit from the downturn.
New passenger car sales slumped by 40% in august.
Car manufacturing is a crucial sector for employment in the country.
India is facing the worst crisis ever since the country formed. In fact, with a low crude oil price, its a time of windfall gains for all developing countries. Many countries are growing spectacularly in Asia and Africa.
But in India, things are falling apart, and the country is heading towards a severe crisis.
India's economy has long relied on state-run banks,
but poor governance and cozy connections
with powerful tycoons helped to contribute to a credit crunch.
This means borrowers had to find new sources of money.
So-called shadow banks popped up,
but these less-regulated lenders ceded
yet riskier loans, especially to real estate investors.
Last month, The Punjab & Maharashtra Cooperative Bank
was seized by authorities, and its top executives arrested.
About 1.5 Million account holders had seen access to their savings accounts constrained.
Resulting in panic and customers demanding their money back.
Rumors of additional bank closures spread like wildfire, resulting in bank runs.
The run on PMC happened almost precisely a year
after the collapse of another colossal shadow lender.
That was depicted at the time as a one-off event.
But economic growth has since hindered to a six-year low,
and investors fear more lenders will go bust.
Loans are now more hard to get,
businesses find it difficult to extend their activities,
and consumers are battling to get loans
for houses or just motorcycles.
Big shadow banks have seen their share prices plunge,
whereas traditional banks are still struggling to retrieve
a year's worthwhile of outstanding loans.
If more lenders go bust, it could generate a domino effect
and diffuse like a virus through the broader economy.
Economists say they see echoes of series of events that
resulted in the US financial crisis, as once high-flying lenders
succumbed to the constraint of bad debt.
And they're concerned India's economy could now
face a reckoning of its own.
India Is In A COMPLETE MESS!
India Is Adding 20 Million People a year.
Where Are The JOBS?

Even the GDP figures are forged and fraudulent.


The actual GDP growth in India is nearly around 3.2% to 3.4% only, besides all types of government's claims.

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