India Finance and Investment Guide
The financial system in India is essentially strong and is operationally wide exhibiting utmost flexibility and efficiency.
The Indian economy is market-driven and productive oriented. Finance in India is very strong that it induces high levels of investment and thereby promotes growth as well as wide economic coverage.
The Financial sector comprises of financial institutions, financial instruments, financial markets and financial services. The finance in India is handled by the Reserve Bank of India at the apex and is the main credit regulator.
The other financial institutions are the commercial banks, cooperative banks, and regional rural and development banks. Non banking financial companies comprise institutions such as LIC, UTI, GIC, Provident Funds, Mutual funds, Post Office Banks etc. are the dominant segments.
Insurance in India is certain to be noteworthy as in simple words it means managing risk. The insurance company collects premiums from its policy holders and invests the same money in low risk investments and later reimburses the same money on the maturity of the policy or if the person passes away.
Insurance in India comprises of Life Insurance dealing with the insured lives, Health Insurance covers expenses incurred during illness and Liability Insurance for property such as property, automobiles and business or professional mishaps. This industry also has a threat of new entrants, availability of substitutes, power of buyers and suppliers.
The financial growth in India is showing a stable growth and is experiencing upward swing. The growth rate per annum is 8.5% and the monetary and financial policies are sustaining stable growth rate. Banking in India is an extensive sector and the recent inclusions such as core banking and internet banking have made the banking operations easy and user friendly. The financial growth in India is apparent in the insurance sector and also in the banks. There are insurance companies comprising of Indian and foreign.
The competition has led to excellent distribution techniques and aggressive marketing. The financial sector in India has insurance as well as banking products assisting in broadening the spectrum that on the other hand encourages the growth. Banking in India is comfortable with the introduction of ATMs and online operation.
