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Finance and Economic Growth An Analysis of Flow of Bank Credit to Industrial Sector in India during 1990s

Listed author(s):
  • Y G Sivaram
  • K L Narasimha Rao
Registered author(s):

    Economic growth and development of independent India hinged on the ability of the financial sector in mobilizing the savings to achieve higher capital accumulation. Nationalization of banks was taken up in order to improve the flow of credit to the neglected areas by the market-driven financial system. There is close relation between flow of credit to a sector and its growth. Since the process of deregulation of the financial sector took place there was a concern about the flow of credit to various sectors of the economy and the industrial sector in particular. This paper analyzes the flow of credit to various sub-sectors of the industrial sector and presents certain observations which are helpful for further micro level analysis leading to better allocation of resources to the growth engines of the industrial sector.

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    Article provided by IUP Publications in its journal The IUP Journal of Monetary Economics.

    Volume (Year): II (2004)
    Issue (Month): 4 (November)
    Pages: 17-26

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    Handle: RePEc:icf:icfjmo:v:02:y:2004:i:4:p:17-26
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