Question

Write a detailed note on financial markets and also comment on the current scenario of it from indian context.

Answer 1

Financial markets are always a backbone of any economy and they will be providing for the required support for the economy through availability of the credit and infusion of the liquidity and they will also provide a platform for exchange of securities and they will also offer investors with the multiple assets to invest into and they will also provide secondary markets which will be including the stocks market and reflecting the direction of the economy.

India is an emerging market and financial markets are one of the most important facets of its growth as it is leading to attraction of foreign investors due to its underpenetrated nature and scope of providing a higher rate of return so Indian markets are always offering with a higher rate of return to the foreign investors because of the possibility of the growth and the financial market will be offering this investors with opportunities to invest into the possibility of growth of India.

Financial markets in Indian context is also important because they will be providing adequate capital to various smaller entities and larger entities and they will also generate a higher employment opportunity and they will also provide a basis for the formulation of the monetary policy and regulation of the monetary policy as well so financial market in Indian economy is very important for its long-term sustainable growth.