ABSTRACT

Indian’s financial system has long been inadequate with an economy worth $ 2 million; the country’s financial flaws are increasingly serious. The India’s growth story although impacted to a great extent by global factors is equally driven by domestic factors. In view of growing integration with global markets, India needs a strong regulatory framework to prevent and protect against external threat and in the meantime grow its economy significantly.

The objective of present paper is to examine the emerging financial sector reforms in the light of ongoing global financial crisis right since US financial crisis and its gradual impact on India in particular. Keeping in view with the above grave dimensions, the present paper is divided into three parts. Part I presents an Introductory background on financial sector reforms in India since emergence of New Indian Economic Policy in 1991 and its gradual sectoral bench marking of reforms at international level particularly US subprime crisis in 2008 and its operation policies implemented in Indian financial sector to overcome the impact of international financial crisis. Part II mainly concentrate on Indian financial sector and its benchmarking of reforms in connection with strong operational condition, the weak grounds, the opportunities and the impending threat on re-emergence of International Financial Crisis. Part III highlights the present and future policy perspectives of Indian financial sector reforms and its impact on service sector of Indian economy. The last part provides aggregative conclusion and some effective line of direction to keep Indian financial sector to its positive health from the angle of future.

Key words: Economic Policy, financial flaws, Financial Crisis