Mapping India's Finances: 60 Years of Flow of Funds

• Main Authors: Narayan, Amay, Jayadev, Arjun, Mason, J. W.
• 其他作者: 24 p.
• 格式: Conference or Workshop Item
• 語言: English
• 出版: H. : ĐHKT 2020
• 主題: India; Financial system; Macroeconomics
• 在線閱讀: http://repository.vnu.edu.vn/handle/VNU_123/70557

We provide a broad brush precis of the evolution of the Indian financial system over the last 60 years. We describe financial flows between different sectors of the Indian economy from 1955 to 2015 using publicly available of funds data. This is a useful adjunct to other macroeconomic accounts. We nd that throughout this period the consolidated government sector is the largest net de cit sector and households are the largest net surplus sector. However, the private corporate sector is now running larger deficits as a fraction of GDP than at any time in the past, implying a greater reliance on external credit from other sectors than in the past. Despite the development of capital markets, private corporate businesses rely on loans and advances more extensively than on debt instruments, and the reverse is true for the government sector. Households have maintained roughly the same portfolio composition throughout the period. The liberalisation and globalisation of nance in India that began in the 1990s has led to a substantively di erent picture than in the past. The Rest of the World sector, for example, is now the second largest net surplus sector in the economy. We describe some implications of these findings.