Over Production Under Consumption and the Government’s Prescription

After grabbing the bigger chunk from RBI, government has now directed the PSUs to loosen their pockets, and shelve out money for Capital Expenditure (Capex). What, does this mean? It is a jargon that amounts to ordering the few profit making PSUs to give money to corporates. When this amount would be invested into capex, it would translate to the corporates getting more work and ultimately getting sop indirectly from the government. Continue reading