<h1>Twin Balance Sheet problem requires recognition, recapitalization, resolution and reform to restore investment and growth.</h1> A central domestic challenge is the Twin Balance Sheet problem-impaired public-sector bank balance sheets and stressed corporate finances-which hampers private investment. The Survey prescribes a four-part response: recognition (accurate asset valuation), recapitalization (equity infusions into banks), resolution (sale or write-down of corporate nonperforming assets) and reform (correcting incentives). It notes ongoing measures such as phased bank recapitalization and regulatory rehabilitation schemes and stresses coordinated action between the government and the central bank.