An Analysis of Ways to Strengthen Financial System in Developing Indian Economy

Abstract

The purpose of this paper is to encourage the financial system in the overall development of the country. The economic development of any country relies on its economic system, which incorporates its banks, stock markets, insurance sector, pension funds, and governments run financial organisation authoritatively. Businesses and industries square measure supported by the money systems because growth employed and successively increased economic activity and domestic trade. It enables the flow of funds from savers to investors to aid in wealth creation and development. Finance is that the key to attaining a semi-permanent growth prospective for any country. Throughout the last decade, the Indian economy has shown loads of progress from a closed, controlled, slowly growing economy to an additional open, additional liberalised and additionally one in all a quickly growing economy among the developed nations. The paper additionally shows that to form an economic system more practical and economical, the necessity of effective management, correct governance and management among the various elements of the economic system is needed.