Transcript
ESWAR PRASAD: Let me just sum up by saying that I think the Committee largely felt that India’s financial system really is at a turning point right now, because India has been growing very fast. But, in addition, it's becoming a much more complex market-oriented economy, and its integration with the world economy, through both trade linkages and financial linkages, has increased very significantly and is going to continue increasing.
So the vulnerabilities in the system are, in a sense, going to increase. So the options as we see it are either to put some of these reforms in place and have a plan for a much broader set of reforms, which would allow the financial system itself to be a source of job creation, and promote these things that we ultimately care about, like growth, stability, and inclusion. And the risk is that if some of these reforms are not put in place very soon, or if they're taken in a very reactive way, I think with the sophistication and rising openness of India, it's going to become an increasing source of risk.
View Full Transcript »