Rbi grade B
Gs3: mobilization of resources- financial markets
Economic survey 2019-vol 1 focuses on investment as a driver of growth. Investments come from savings of households, profits of corporates or in the form of lending i.e. credit for businesses. Since there is no wage growth there is no saving in the economy. Hence households cant invest much.
If all the lending is routed from banks and NBFC, how will they cope with bad loans? Hence there is a need yo strengthen corporate bond market.
Yet we see limited success . Reasons being :
1. Differential tax rates
2. Inflation linked FD and saving schemes of govts
..etc read the highlighted part
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