Of course, more persistent capital overhangs may well have been experienced in some sectors, most notably in telecommunications equipment, though that sector accounts for less than 10 percent of business fixed investment. Another leading hypothesis is that businesses were more risk-averse than warranted by the underlying economic fundamentals, especially early in the expansion.
This is a timely initiative as the events of last year have made it clear that we in India still have some ground to cover in order to make all our banking institutions safe, sound and efficient.