India has the second largest population in the world and as per the current trends; it is set to overtake China by 2030. Having a large population can be both a boon and a bane. Till 1991, Indian economy was a mostly driven by domestic players and with burgeoning population numbers, the stress on financial resources was immense. It was during that period that we had to pawn our gold to sustain our debt repayments.

      Post Liberalization, the economy moved from a largely socialist to an open market capitalist. The population which was our biggest problem suddenly became our biggest attraction. A huge unexplored market made the overseas companies come in droves to the Indian shore. It was as if the tiger had been unleashed. From the car manufacturers, to the FMCG to the consumer durables, every market had something new and innovative to offer. The domestic companies struggled to keep pace, and while some improvised the others just folded up.

      The coming of Multi-National Companies to India also opened up the job sector. New business parks were developed, new industrial zones came up and with that came the demand for more capital. This led to the re-entry of private banks after the nationalization of 1969. The private and some foreign banks changed the way credit was provided to the general public. From the whims and fancies of the Bank Manager, to the door step banking, Indian public had been a complete 180 degree shift. The customer became the king and the lenders were competing for his attention.

      Easy money encouraged consumerism and more demand for products which in turn meant for demand for retail loans. The aggressive lending also meant going easy on the credit appraisals. Policies were made only to be waived off in most cases. Credit was more of a processor than an appraiser. The private banks were going full throttle in the retail space and the public sector banks were putting their money on the corporates. The markets were booming and the income levels were rising. The story of India was unfolding.