There is no credit crunch in India, says DBS managing director Taimur Baig

In the present context, there isn't a whole lot that a rate hike can accomplish other than being a signaling device

India’s foreign exchange reserve of above $400 billion gives a better protection ratios against external threats, but the adequacy is way below other countries in the region. Investors won’t see India is isolation, and therefore it is left to the government and RBI to formulate better policies to insulate India from portfolio-led volatility, said Taimur Baig, managing director and group chief economist of DBS. In an interview with Anup Roy, Baig says one-day default norm may not be a good idea, but the overall war on bad debt is in the right direction. Edited excerpts:

What is your take on the