An Analysis of Indian Financial System and its Effect Over Indian Economy

Ghausia Mushtaq
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Ghausia Mushtaq: Research Scholar Singhania University, Rajasthan –India

Indian Journal of Commerce and Management Studies, 2011, vol. 2, issue 6, 62-67

Abstract: The financial system develops a link in between savings and investment through its various components like financial institutions, financial markets, financial services etc., thereby channelizing the funds or flow of funds from the ultimate lender to ultimate borrower and thereby paving ways for economic development. The current analysis is focusing on the Indian Financial System and its role in the economic development of the nation. The saving and investment pattern and its effect of the GDP the capital formation and its importance for the economic growth and the credit creation theory that helps to understand the link of financial system to the economic growth. The current paper also focuses on the patterns of relationship between economic development and financial system. It is an attempt to understand the symbiotic relationship between the financial system and economic development.

Keywords: Financial System; Economic Development; Symbiotic Relationship (search for similar items in EconPapers)
Date: 2011
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