Financial Markets and Investment Finance in India

Abstract

The goal of the present chapter is to review the extant literature to summarize and outline the broad contours of the work around monetary transmission channels in India as well as shed light on some of the key features and changes in the Indian financial system with an attempt to broadly link the two. Notwithstanding several changes since 1991, Indian financial markets are still a long way away from being an effective conduit of monetary policy. They do not provide banks with enough competition. Further liberalisation, like FSLRC-proposed changes, may change that.