Bad secularism meets bad economics
One of the successes of the post-1991 economic reforms has been India’s banking system. In those numerous comparisons with China, the banking system is held to be an area where India does better. That’s because while Chinese bank lending is directed by the government, liberalisation allowed Indian banks to lend based on the merits of the borrower—essentially, the capacity to pay back the loan and interest.
And now, the man who ended up receiving the credit for those reforms is presiding over a government that is determined to undo them. Indian banks, the UPA government has directed, must set aside 6% of their total loans to, well, people belonging to religious minorities.