The money trail of credit growth is misleading in the economy

The credit growth in the economic setup of India has been training for a long time as the banks though infused with capitals many times before, have failed to provide the growth momentum needed for the credit to suffice in the manifold of things. The hurting has come a long way from a muscle pull into gangrene, which has infested half the arms that are supporting the credit growth with malice and under-reporting of the NPA’s which have grounded and gutted the system to the point of no return. The picture started with the falling of IL&FS the infrastructure management fund and incorporated NBFC which was responsible for piloting the infrastructure domain-related development in the country around a time when the government in power spoke extensively of the need of the time to upgrade the infrastructure and started investing heavily in the projects with IL&FS being a stakeholder in many of those pioneered programs what it showcased was good financial health while what liked underground was the rotten auditing done to give that structure a shape, though it was a problem worth only ₹25,000 Crore on its face value, the value addition it has to the projects and the market points it held along with investor sentiments went into a tailspin after the company declared bankruptcy and went down with all the investment made under the parent company and the subsidiaries which were later resolved by the CoC for operational credits being paid. The resultant vector has been harmful to the economy as widely visible through the spectrum of dropping consumption, but what needs to keep in mind is that if a country needs to grow, the credit needs to flow, which has unfortunately stopped after the crash.