The to improve the economy of India. Due

The
developments in the Indian Financial System from 1900-2017:

Indian
financial system plays a major role in developing the Indian economy. Indian
financial system acts as intermediary agent between surplus and deficit state
and facilitates the flow of funds among them. Indian financial system supplies
funds to the deficit to improve various sectors of the economy by utilizing the
resources without destabilization.

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Indian
financial reforms were started with the Narasimham committee recommendations,
which increased the level of financial system in India. These reforms improved
the banking sector, financial institutions, capital market, and money market
which formed the strong financial sector in India. These reforms helped in
forming new private sector banks with long term lending institutions to
carryout banking activities and deregulation of interest rates, etc. Many
changes were adopted by the financial system to improve the economy of India.  Due to these changes, the banking sector
improved and increased more in recent years. The financial system creates
bridge between the persons who have excess finance and the persons who require
the finance to improve the investment opportunity that leads to economic
growth. The various changes in the financial system improved the country in
industrializing which increased the level of GDP.

The
financial system improved the living standard of the people to acquire the
luxury things by providing funds to them. The industrialization in India is
achieved due to the financial system which helps in increasing the production
and financial capital of a country. The financial market improved the economic
growth by giving funds to the most efficient investors, and by encouraging
innovations. The financial system also enhanced the corporate sector, by
monitoring the management and improving the corporate control. The financial
institutions lend funds to the individuals, farmers, industrialists and
entrepreneurs by collecting savings from the people.

The
Indian financial system includes commercial banks, insurance companies,
non-banking financial companies, co-operatives, pension funds, mutual funds and
other small financial entities. Banks plays an important role in developing the
economy, by improving the industry and trade activities. It acts as a custodian
of the wealth and resources of the country which improves the economic growth. The
financial system also improved the gross domestic savings and gross domestic
product of the economy and projected its growth in the upcoming years. Most of
the household savings in India are invested in the bank deposits and other
financial assets. In 2015, India’s GDP growth increased compared to china due
to the efficiency in financial system which proves the country as developing
economy. The government of India introduced many reforms to regulate and
enhance the economy by improving primary, secondary and tertiary sectors.  The Government and Reserve Bank of India have
taken various measures to facilitate easy access to finance for large
enterprises, Micro, Small and Medium Enterprises (MSMEs), farmers and also
tertiary sectors.

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