One of the main drivers of the development of the Indian economy remains the personal consumption of households (% of GDP), although its volumes fell in - as a result of demonetization (the abolition of banknotes in denominations of and rupees) and the introduction of a Goods and Services Tax (GST) .
Despite the relatively long time since demonetization, its existing mobile number list have negative side effects are still affecting the Indian market, as the informal sector of the economy has been hit hard. Higher energy prices and a weaker rupee have also weighed on private consumption.
difficulties with two key rate hikes in June and August . Rising costs of servicing borrowed funds will continue to negatively affect the growth prospects of the Indian economy. The high share of non-performing assets in the country's banking sector (% of total assets in March ) forces banks to limit lending, which only exacerbates the debt financing gap.
The problem was also exacerbated by the September default of India's largest non-bank creditor IL&FS, which seriously worried entrepreneurs in several key sectors of the Indian economy, such as retail and construction. Difficulty in access to borrowed funds led to a decrease in investment and a slowdown in the growth of industrial production.
Risks and forecast
In anticipation of the upcoming elections, investors and economists are closely watching the dynamics of the Indian market.