World's Fastest Growing Major Economy Has A Cash Problem - Karan Mehrishi, Lead Economist, Acuité Ratings & Research Limited

30 Oct 2018


Despite being the world’s fastest growing major economy, India is having trouble in mustering enough ammunition to sustain its momentum. The economy it seems is running out of cash and systemic liquidity has fallen much faster than anticipated. As things stand today, the liquidity situation is grim and requires a serious rethinking. The central bank is expected to take evasive steps to calm the system – the costs may however be underestimated at the moment.

Our exciting journey started in 2005 with rating of bank borrowers most of whom were small and medium enterprises. At that time, credit rating was a concept known only to large issuers of capital market instruments. Since then, like a caterpillar transforms itself into a beautiful butterfly, we transformed to rate bonds, bank facilities of large corporates and issuers across industries. Along came many achievements - SEBI Registration in 2011, RBI accreditation in 2012, 50,000 ratings in 2018, 5,000 Bond and Bank Loan Ratings in 2017, launch of India's first Android and iPhone app to disseminate rating, tamper-proof QR-code-enabled rating rationales, and SMERA Terminal to name a few.

Now is the time to re-emphasize our increasing footprint across all segments of ratings through the launch of our new name - 'Acuité'.

The name has changed. The spirit of upholding highest standards of analytical rigour, continuous improvement, excellence in our processes and quest for innovation remains the same. We would like to re-emphasize that we will continue to work hard to provide independent, unbiased and timely opinion of highest standard.

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Sankar Chakraborti