The Shourie Show – an addendum

On being prompted by a well-wisher, I checked my information on ‘Non-food credit’ vs. ‘Credit to Industry’. Dr. Shourie was right. ‘Credit to Industry’ was growing at an annual rate of around 3.5% only, as per newspaper reports, in mid-April. Non-food credit includes personal and commercial/industrial loans. Nonetheless, the broader point about the investment cycle and the culpability being more with the private sector’s balance sheet woes and the previous government, remains.


One thought on “The Shourie Show – an addendum

  1. This is a very interesting and important thought.

    Average intensity of investment demand measured relatively has dropped and unless one factors in road projects, the demand for industrial investment as seen through credit growth will remain tepid (my hypothesis).

    This is perhaps also seen in bank loan books where personal credit now makes up about a quarter of total loan books. And this is growing very well as mortgages have taken off in a big way. And most banks have also been trying to push on retail demand as they have seen lesser NPAs flowing from this segment.


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