Current Affairs · Indian Financial System

Evaluate the following statements regarding the structural challenges of capital formation and resource allocation in the Indian Economy: Statement I: India's Gross Fixed Capital Formation (GFCF) as a percentage of GDP is driven completely by the public sector, with the private corporate sector playing an insignificant role. Statement II: The high prevalence of informal sector financing means a large portion of the population relies on unorganized lenders at high interest rates, constraining formal financial inclusion. Statement III: The modified GDP deflator is the preferred operational measure of inflation used by the Monetary Policy Committee (MPC) for anchoring interest rate adjustments. Statement IV: Land acquisition bottlenecks and environmental clearances significantly prolong the gestation period of large infrastructure projects, raising capital costs. Statement V: The 'evergreening of loans', where banks extend new credit to stressed accounts to temporarily conceal Non-Performing Assets (NPAs), undermines capital adequacy transparency. Statement VI: A challenge in India's fiscal structure is the high reliance on indirect taxes relative to direct taxes to generate revenue. Which set of statements is factually correct?