Financial Reforms in INDIA

Financial Reforms in INDIA

Author Name : Dr. Vaishali Sharma

ABSTRACT

Banking Sector of any country is the back bone, with the help of this country’s economy can survive strongly. These all are crucially determinant of any country's economic growth. For development of financial sector, India introduced economic reforms programme in the early 1990s. These reforms affected the functioning of the financial institutions especially banks.

Due to this, Indian economy has been achieving impressive growth rates. The main object of the financial sector reforms has been the creation of efficient and sound financial institutions and development of the banks. One of the major objectives of Indian banking sector reforms was to encourage operational self-sufficiency, flexibility and competition in the system and to increase the banking standards like control over NPA’s, increases of Advances etc. After achieving great successes the second phase of reforms began in 1997 with target to reorganization measures, human capital development, technological up-gradation, and structural development for overall economy growth.

The paper is presenting financial sector, reforms in banking sector in India, identify the emerging issues and determine the achievement of reform. The paper is focused to a brief background financial sector reforms as well as focused to the institutional aspects of the reform but  only banking sector will be analyzed in

In the present scenario, the Covid-19 crisis required a large macroeconomic stimulus. Government has to try to establish the financial stability in the Market. Financial Reconstruction should be maintaining by the government. Major policy may be created by government and implication should be speedy. A high growth burst in the 2000s was not sustained. There was a slowdown after 2011. Growth was 3% per annum slower than in the previous period. The years 2016, 2018, 2020 saw reversals of weak growth revivals. In 2020 this is due to the Covid-19 shock.

Key Words- Financial reform, The Narasimham Committee, covid-19.