While, on the one hand, the outlook for the global economy continues to be grim, the outlook for the domestic economy is also far more subdued than the last year.
Growth of the Indian economy for 2012–13 is projected at 5 per cent – significantly below the 9 per cent growth rate envisaged during the Twelfth Plan and well below our desired goal of double digit growth rate. The Indian banking sector has also faced significant challenges. Asset quality of banks has come under increasing pressure with rising NPAs and Restructured loans.