INDIA

International Monetary System

 The Indian financial system is undergoing a gradual structural

shift, with a greater role for nonbank intermediaries and higher
recourse to market funding for large corporates. Financial system
assets equal about 136 percent of GDP, close to 60 percent of
which reflect banks’ assets. The state retains an important
footprint in the system via ownership of large financial
institutions, captive government financing, and directed credit to
priority sectors.
Levels of Economic
Integration
 Free Trade
 Common Market
 Economic Union
 Political Union
Various Arguments of
Economic Integration
 

 Increasing Economic Growth

 Skilled and cheap labor
 High Demand for job opportunities
 Indian Aid to Co-
Developing Countries

 India emerged as a benevolent donor for her immediate

neighbor's with total foreign assistance, including technical and
economic cooperation, and loans to foreign governments,
increasing dramatically over the past years.
 Indian aid perfectly fills this space as it provides untied aid in the
form of concessional grants and loans to her neighbor's, targeted
at infrastructure development.
 India provides aid to her neighbor's in sectors that hold mutual
economic-strategic interest, such as transport, energy and democracy.
In this manner, India acknowledges the development needs of her
neighbor's, especially smaller landlocked countries like Bhutan and
Nepal.

 India, which is in a position of dependency towards the industrialized

States of the West and to the Soviet bloc, and which has been a
recipient in the past of massive aid, is now conducting its own aid
programmed and forging relationships with some developing States.
This suggests dependency upon India, or at least mutual dependency,
and calls for a revision in the analysis about States such as India.
Price is what you pay.
Value is what you get.