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.