THE CHALLENGES AND IMPACT OF THE FINANCIAL SYSTEM ON ECONOMIC GROWTH IN THE CONTEXT OF INDIA ECONOMY

Dayalal Sankhla

doi:10.29121/shodhkosh.v5.i7.2024.2586

Authors

Dayalal Sankhla Assistant Professor, Department of Economic Administration and Financial Managemant, M.B.C. Government Girls College Barmer, Rajasthan, India

DOI:

https://doi.org/10.29121/shodhkosh.v5.i7.2024.2586

Keywords:

Indian Economy, Financial System, Economic Growth, Financial Inclusion, Banking Reforms, Regulatory Challenges

Abstract [English]

This paper examines the challenges posed by the financial system on economic growth in the Indian context, addressing critical issues such as access to credit, financial inclusion, regulatory bottlenecks, and infrastructure constraints. The financial system is central to economic development, yet in India, structural inefficiencies and limited access to capital often hinder growth. We explore the extent to which India's financial sector supports sustainable economic development, focusing on the impacts of banking reforms, digital financial innovations, and policy frameworks that aim to improve access to finance for businesses and individuals alike. Through an analysis of recent data and trends, this study highlights both the potential and limitations of the Indian financial system in fostering long-term economic growth, providing insights into policies that could strengthen its role in the economy.

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