Indian growth story of the 2000s' cannot be over-simplistically
explained as a result of "market-oriented"
reforms. Public sector bank credit-financed investments,
particularly in the infrastructure sector, played a
significant role in sustaining growth, most crucially
after the global economic crisis. Such a growth trajectory,
however, proved to be unsustainable with the expansionary
phase coming to an end in 2011-12 and bad loans piling
up in the banking system.
article was originally posted in Economic & Political
Weekly on August 5, 2017.