PROMOTING DEVELOPMENT FINANCE FOR ECONOMIC GROWTH AND STABILITY: AN INDIAN EXPERIENCE

Prof. Dr. Ravinder Rena

Abstract


Finance is a life blood of any economy. Both empirical and theoretical research confirms that a sound and effective financial system is vital for economic growth and development. ‗Development Finance‘ has consistently been gaining significant importance over a period of time. Globally, finance flows are playing a predominant role in economic activity. In line with this it‘s imperative to emerging but giant economy like India has been gaining strength and ranked third in the world which mobilizing financial and technical resources to keep this momentum. For the last 25 years, India made advances in science, technology and innovation areas that enhanced the potential to accomplish its development goals. In fact, these positive changes have contributed to a sizeable reduction of extreme poverty. As Indian economy the fastest growing economy in the world which has been experiencing greater challenges within its financial sector especially after post-reform period i.e.1990s. This paper examines the impact of financial sector on economic growth and development of India. Further it also seeks to establish the relationship between financial development and the source of growth during the post-reform period.

Keywords


Development Finance, economic growth, financial sector, Global financial crisis, Indian economic reforms

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