Summary |
The nineties will be considered as a decade of economic change for many countries. There countries have implemented change based on privatisation and liberalisation. Even the fundamentally communist countries. India with its mixed economy, has also approved to policy of market-oriented economic changes.
The financial sector plays a major part in the economic development of any country. It is through the development of share market, capital market and banks, that agriculture, commerce, trade and public services progress. The capital market provides timely and adequate funds at reasonable rates for the progress of these sectors. It is only through the capital market that effective and worthwhile execution of monetary demand and supply is managed. The Central Bank controls the supply of funds through the monetary policy. If this is not regulated, the economy experiences serious fluctuations and retards development.
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