The role of an integrated financial infrastructure in stimulating and sustaining economic growth is well recognised now. It is also widely accepted that financial intermediation is essential for both extensive and intensive growth.
Today in India, demographics is at the core of any challenge that we face in terms of generating employment or delivering public services or education or health or even unique identity numbers.
Financial deepening implies the ability of financial institutions to effectively mobilise savings of the masses for their benefit. One of the key features of financial deepening is that it accelerates economic growth through the expansion of access to those who do not possess adequate finance themselves.
Although the economy has made rapid strides in recent years along with higher savings and investment rates, inclusive growth continues to be a challenge. India not only lags behind the developed world but it also has a comparatively lesser degree of financial inclusion as compared to countries like China. Financial inclusion implies ease of access, convenience and low-cost availability of financial products and services to all sections of the population.
Macro-economists measure a nation’s financial deepening by comparing the size of its financial system to the size of its economy. Common measures of financial deepening include ratios of a nation’s financial asset base to its gross domestic product. Unfortunately, such ratios or indices do not provide any actionable guidance at the micro-economic level to individual financial institutions on how to go about the act of financial deepening.
Two important elements are inter-related and actually throw some light on financial deepening both as an opportunity and as a challenge for us in India. For it to be an opportunity, we need to view Financial Inclusion not merely as a service to the unbanked, but as a platform for catalysing development and inclusive growth.
The prescient phrase, ‘India on the Growth Turnpike’, Dr. Vijay Kelkar used in his 2004 Canberra Lecture reflected a reasoned optimism.
Server virtualisation can be viewed as part of an overall virtualisation trend in enterprise IT that includes storage virtualisation, network virtualisation and workload management. At the National Informatics Centre,
The past couple of years have witnessed an exponential growth in the amount of attention that cloud computing has gotten. It is now reached a point where it is being touted as the solution to everything from controlling capital expenditure
Though banking institutions headed by the RBI have done and are still doing much to provide access to banking throughout the country, insurance is a sector where a lot of work is still pending. Specifically, a lot needs to be done for the penetration of funds into the untapped sections of the Indian democracy.
An old saying reminds us that poverty and sickness marry into the same family. The poor cannot afford to be sick and when sick, most often, they cannot afford to get well.
Meenakshi Datta Ghosh
In Financial inclusion has been defined as the desired state in which all eligible people have access to appropriate financial services, which includes not only banking services but also other services like pension, insurance, alternate savings, etc.
Financial deepening is not the same as financial inclusion and the two terms should not be used synonymously. Apart from anything else, the policy implications are quite different.
In the last decade-and-a-half that India has successfully embraced economic reforms, a curious problem has haunted the country and vexed its policy makers: its excellent growth has had little impact on food security and nutrition levels of its population.
N C Saxena
Given the stage of development of the Indian economy and the growth of GDP of over 9 per cent in the immediate years preceding the global financial crisis, the aspiration for a sustained 10 per cent growth rate is unexceptionable.
S S Tarapore
The process of standardisation of vehicle registration and other documentation originated in 1992 and a lot of thought and effort went into realising the dream. “We started with Delhi. It was a standalone project at that point of time,” says Mahesh Chandra, Deputy Director General, National Informatics Centre. “The national version came only in 2002, 10 years after we started in Delhi.