I'm not sure who the planned intervention is for, but it looks very much like it's for the corporate sectors.

The MSME sector, which is touted to employ 92% of India's labour has widely been reported as having taken a very bad hit after the double attack of GST and demonetization. RBI on the other hand is said to favor vulture funds (resembling IMF's 'solution' during the Asian crisis).

Then again, the Indian state has let high profile defaulter escape with impunity in the past few years. There are indications that this was done consciously, through PMO/CBI intervention.

All in all, I have very little trust in any institution of the Indian state.

Indeed, I suspect demonetization was in part a scheme to replenish the reserves of the state banks.

I think it was bring back cash and also to win Uttar Pradesh state elections. A 100+ plus people died because of that and not many people cared. Sigh

>>not many people cared

No person in India cares much anybody or anything else. Unless they are directly affected by it.

People optimize so much personal good, that bad things happening to others are actually celebrated.

The Indian population is growing by 1,920 people per hour- so they would have been quickly replaced.

... of course low credit rate means money has a tendency to go into unproductive sectors (ala Japan's Bubble heydays).

(I'm glad to see Economist reflect my understanding.)

Why don't you write all of this in just one post?

> It's really not clear what's going on in the Indian state.

It's crystal clear actually. Decades worth of stupid decisions (or indecision, as many claim) are finally bearing fruit. Unfortunately the current government, the first in many years that is actually taking some decisions to get the ship in working order is gonna get caught in the quicksand created by its predecessors.

> Unfortunately the current government, the first in many years that is actually taking some decisions to get the ship in working order

Well, the current government did its part in letting the tycoons, who took large loans, get out of the country. The currency ban was another stupid mistake (source:https://www.nytimes.com/2018/08/30/world/asia/modi-india-rup...) that led to chaos and people lost trust in the banking system. They don't know if they will easy access to their money in the banks with the cash withdrawal limits and ATM issues.

If people lose trust and don't deposit the money, eventually the whole system would collapse.

> Unfortunately the current government, the first in many years that is actually taking some decisions to get the ship in working order is gonna get caught in the quicksand created by its predecessors.

Citation (and additional information) required on this part, please.

The BJP(current government) has neither the brains and nor the motivation to develop the country. All they want to do is get the country back to the vedic period(which is nothing but denting the education to the majority of the people).The leader of the party Modi was in the ads(jio) publicly. It was a public announcement by the corporate to the other organizations that they own the government. Also this same government banned the beef. This government is more like trump focusing on religious hatred for votes and nothing more that that(https://en.wikipedia.org/wiki/2002_Gujarat_riots was led by the current leader and prime minister of the party).

Yup.

Construction of roads and toilets, GST, IBC, electrifying of all villages and all other reforms initiated by the current government are part of a larger scheme that's taking us back to the vedic period.

To understand real indian culture with the proofs and evidence this short essay(Annilation of Caste) will gives the idea http://ccnmtl.columbia.edu/projects/mmt/ambedkar/web/reading.... Once you read this essay you will have pretty clear idea when speaking to indians about their motivations. Also this author arundathi roy is fascinating https://www.youtube.com/watch?v=ddKzcrwC9os. She has shared stage a lot of times with Noam Chomsky too.

ha, that is patently untrue, but like your claims mine will also remain unsubstantiated

"The present troubles have their roots in 2005-12, when state banks went on a lending bender, extending credit to dubious tycoons and to infrastructure projects. Net bad debts are 9% of state banks’ loan books. The government has not properly recapitalised these zombies and the flow of credit from them has slowed. Accidents keep happening. In February pnb, the second-biggest state lender, disclosed a $2bn fraud involving diamond merchants."

Quote from the article