Businesses in India unable to repay loans

The latest media reports indicated that banks in India are finding a great increase in the number of defaulters as businesses are increasingly unable to repay the loans they have taken. More than external factors, it is a reflection of how difficult it remains to do business in India, to earn reasonable profit.

Instead of helping small and big businesses flourish so that they make more profit and pay more taxes, generate more employment, unless the business owner is well connected, a business owner will often find that a huge amount of indian tax payer money will be wasted to make it very difficult for the business owner to earn even a single rupee.

If a small business is targetted for a hostile takeover by a large and well connected company the plight of the business owner will be terrible. The harmless business owner will be subjected to a terrible slander campaign, under surveillance for more than 5 years, retirement savings, resume and correspondence stolen. Powerful officials will waste tax payer money to block the payment which the business owner would have otherwise received, spreading malicious rumors

It is almost universally agreed that it is difficult for a small business owner to take on the might of the state. 5 years ago, even this business owner could not imagine that conditions would be so bad and powerful officials so dishonest,greedy and without honesty. When a business is not earning any revenues, how can they repay the loans they have taken? Till the top officials end their negative attitude towards hard working business owners, wasting tax payer money, the banks in India will deal with bad debts, unpaid loans