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How trust deficit at multiple levels is hampering animal spirits and growth in India

India’s economy and businesses are facing many measurable, well-understood challenges. But an invisible crisis that is just as corrosive and harder to fix is underway: the erosion of trust. This is playing out at multiple levels.

By Vinod Mahanta, Kala Vijayraghavan, Suman Layak and Saloni Shukla, ET Bureau |Updated: November 16, 2019, 11.11PM IST
The view used to be that economic production happens at a magical confluence of land, labour, capital and entrepreneurship. But modern economies are complex webs of interdependence that are held up by regulation, contract law and much else, but most importantly, by an intangible glue — trust. Investors — domestic and foreign — trust the state to ensure an
veil of mistrust and stop the rift from turning into a chasm. A senior businessman, who asked not to be quoted, says he knows quite a few members of the creme de la creme of India Inc who are considering resettling somewhere outside India. "This government refuses to listen enough," he says. With additional reporting by Kailash Babar

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