IL&FS apparently has funded quite a large number of infrastructure projects, which unlike Lehman have tangible value. NHAI, the state highways agency is said to owe a great deal of payments to IL&FS (rumoured to be on the order of $ 5 B).
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.
(I'm glad to see Economist reflect my understanding.)
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.
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.
Citation (and additional information) required on this part, please.
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.
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.
Quote from the article