Description
Shipra Publications Interest Rates In India Towards Harmony by G Giridhar Prabhu
This book addresses the evolution of an interest rate structure in India from the controlled era prior to 1991 to the gradual transition to market oriented rates. The anomalies, distortions and aberrations from time to time got addressed simultaneous to the outcome of the expansion of the economy. Some areas are still open to corrections and corrective actions. Subsidies in interest rates give rise to economic inefficiency. The large scale capital flows in the world into India and outflows could affect interest rates. Concerns at the large outgo of interest payments of Government of India and State Governments have been highlighted with possible remedies.Sound regulation is a pre-requisite for a modern financial sector. Building of new institutions and strengthening existing ones will give rise to a robust financial sector. India's position as one of the five largest economies in the world for the rest of this century needs to be consolidated. Liberalism answers to the requirements of a market economy. Education, organisation and self-discipline are the only missing ingredients in the presence of ample resources.Harmony is an expectation as well as a result of orchestration of all players in a financial market. Integration of India with the world on India's terms is the main theme. The book is for the earnest in authority to see policy into practice and for the intelligent observer who can balance opposites.