Why an efficient financial system is crucial to consumption ecosystem ? - letsdiskuss
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Blogger | Posted on | Share-Market-Finance


Why an efficient financial system is crucial to consumption ecosystem ?


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Project Manager at The Economic Times | Posted on


Before I write an essay on Financial system, let me take ask you a small question.
Why should you follow traffic rules?

Simply because they prevent vehicles from causing accidents and help maintain traffic flow on roads. Traffic rules bring discipline on the roads.

Similarly, efficient financial system is crucial for economies, businesses and organisations around the globe. There are more reasons why a robust financial system is quintessential in a country like India.

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India has mammoth population with similar degree of infrastructure it requires. In order to fulfil even a fundamental requirement of all citizens in our country we need to develop a huge infrastructure. Unfortunately, even after nearly eight decades of independence, our governments are yet fulfil the basic amenities across the country.
However, India has grown like anything in the recent past. Today, our country is among top choices for any investment option by global leaders. India is seen with a lot of potential.
In India, we still have nearly 1 bed per 1000 people as compared to over 3 hospital beds per person in developed economies. Hence, if our government decides to improve only on this front a lot of finance would be needed. Moreover, urbanisation has led to a growth of in chronic diseases. India is in the dire need to improving facilities which can address the situation. Now this create opportunities for investors, regulators and the public alike.
The most critical aspect of the healthcare ecosystem is that financing is needed for both infrastructure creation as well as for facilitating consumption.

Now, if adequate capital is available for creating infrastructure but access to healthcare for end-consumers is restricted due to a lack of financing options, then the hospital infrastructure will both struggle from an investment perspective and fail to deliver economic value in the long run.
The need for a robust financial backbone is not limited to the healthcare sector alone. All consumer-driven industries function on the same dynamics are critical for economic growth.


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| Posted on


Efficient financial system is crucial because supply and demand of good/services rely on the flow of money in the country. This balance must be maintained in an economy else the history of Japan's lost decade will repeat and a country's consumption ecosystem will come crashing down. Be it any country, with the increased dependence on one another in today's world, one bad economy can affect all the other countries it deals with in trade.


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Blogger | Posted on


Increment in Output: A monetary framework assists with expanding yield by moving the financial framework towards the current creation boondocks. The monetary framework actuates individuals to hold less sparing as valuable metals, land, buyer sturdy and cash and to supplant these benefits by bonds


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