The Economic Survey warns against excessive financialisation , where too much of household savings flow into the stock market . This trend...
The Economic Survey warns against excessive financialisation, where too much of household savings flow into the stock market.
This trend can harm the economy, especially for a low-middle-income country like India, by increasing reliance on rising asset prices to drive growth.
Financialisation can exacerbate inequality, influence public policies, and create a debt burden.
India must balance financial sector growth with the risks of financialisation, ensuring policies align with national growth goals.
The country needs to prepare for potential vulnerabilities, with appropriate regulatory measures to manage risks.
Banks should enhance capabilities to support new-age households and the digital economy while maintaining credit creation functions.
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