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International Monetary Fund. Asia and Pacific Dept

consistently fallen short of meeting its own domestic demand . The area under cultivation of pulses has not increased much and yields have remained stagnant for a long time. This is because of the large risk and uncertainty in production and prices (pulses are typically grown in rain-fed areas 4 with high incidence of pests), which has led farmers to move away from pulse cultivation to other crops with better return and lower risk (such as rice, wheat and cash crops). The excess demand for pulses is estimated at about 3–5 million tons per year, and while imports help fill

International Monetary Fund. Asia and Pacific Dept
This Selected Issues paper evaluates corporate and banking sector vulnerabilities in India. The analysis shows that while corporate sector risks have subsided, debt repayment capacity remains strained, and high leverage continues to weigh on corporate resilience, which may pose further risks to banks’ asset quality. Public sector banks have stepped up recognition of nonperforming assets, but their debt recovery capacity remains weak. Simulations suggest that potential recapitalization needs, at current provisioning levels, should have a modest fiscal impact.