Although the initial problem was supply-side constraints, private consumption also weakened because the combination of increased uncertainties about the future and voluntary restraint by consumers led to a deterioration in household sentiment. As a result, in March, industrial production registered the largest month-to-month drop on record, surpassing the decline following the Lehman shock.
This would also go a long way in fulfilling our financial inclusion objectives for the SMEs, most of whom, as we know, do not have access to formal financial sector. Corporate debt can also provide an excellent long term investment avenue for retail investors, who lack knowledge and understanding of this important asset class.