How will Modi govt fix India’s problems? : ft. Sanjeev Sanyal
Indian Business Podcast
Lowering Capital Costs Unlocks Growth Potential
To foster economic development, it's essential to lower the cost of capital, a process that is expected to evolve naturally as the country matures. The revitalization of the banking sector and a stronger credit culture are crucial, as poor credit practices burden responsible borrowers. Currently, strong companies are attracting significant investment, showing that although historical issues persist, access to capital is improving for startups with solid ideas. However, ongoing challenges include the embedded repetitiveness in the system, characterized by overregulation and rent-seeking behaviors that hinder the growth of mid-level enterprises. Additionally, cultural factors, such as the societal preference for traditional examinations over entrepreneurial pursuits, impede talent from engaging in innovation and business development.
