INTRODUCTION TO FINANCIAL SYSTEM


INTRODUCTION TO FINANCIAL SYSTEM

India has seen vast changes in its economic setup post independence. However, the first three decades saw India’s GDP growth rate hovering between 3-4% per annum. Some initiatives were taken in 1980’s for the upliftment of the economy that actually pushed the GDP to 5.6%. But, to obtain overall growth and development of the economy that can put India on the Global Map, India needs efficient financial systems. In this respect, efforts were made in 1991 through the policy of Liberalization, Privatization and Globalization. That has, indeed, put India on the global platform.

The financial system is possibly the most important institutional and functional vehicle for economic transformation. Further, for mobilization of savings and their efficient, effective and equitable allocation for investment, it is the success with which financial system performs its functions that sets the pace for the achievement of economic growth and development of a nation.

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