Massive debt write-offs required to rescue large corporates: Eco Survey

Economic Survey 2016-17 says even after eight years the bad debt problem remains unresolved

The Economic Survey 2016-17 has painted a grim picture of the state of public banks and indebted corporates in India. The annual survey says that 57% of the top 100 debtors would need debt reductions of more than 75%. At least 13 public sector banks accounting for 40% of the loans are severely stressed. More than 20% of their loans are unrecoverable.   

This Survey predicts that India may be unable to grow out of its debt problem and that it would soon take a toll on economic growth. That’s because stressed corporates are reducing their new investments while stressed banks