With the nationalization of insurance industry in 1956, the state-run Life Insurance ?Corporation of India (LIC)& ?General Insurance Corporation of India (GIC) assumed monopoly in the country''s Life Insurance Sector. Over time, taking advantage of its monopoly and ?virtual prerogatives in establishing premiums, LIC and GIC have evolved into a ?monolithic undertaking together forming the insurance sector of the country. With more ?agents spread in every nook and corner of the country; it has created an enviable brand ?name, particularly among the rural population of the country.In the post-liberalized era, this ?industry has become very competitive with private players bringing in new and variant ?products and marketing techniques. This book aims at gauging the improvements and ?weaknesses and devising on solutions present in the form of suggestions. This book, ?therefore, also aims at assessing the impact of economic liberalization on the insurance ?sector in India so as to prove whether the reforms, in general, have resulted in improving ?the efficiency of the (LIC) and General Insurance ?Corporation of India (GIC) or not.?
India initiated macroeconomic stabilization measures and structural reforms in July 1991 and since then the reform process has been refined and elaborated. The economic growth in India during the reform period has been generally regarded as “good” but not “sufficiently inclusive”. These concerns necessitate a detailed stock taking of India’s economic policies and its outcome over the reform period to identify its success and failures and suggest for restructuring the economic policies to achieve a higher, sustainable and sufficiently inclusive growth rate in future. This edited book examines the impact of the economic reforms on various fronts since 1991. It contains thirty seven articles divided into five sections viz.; section I: growth, poverty, unemployment and reforms; section II: economic reforms and Indian agriculture; section III: sectoral and regional issues; section IV: banking and financial sector reforms; and section V: India’s external sector reforms. The book is useful for the students of various disciplines who have interest in the subject and are involved in the research and development.
The present study pertains to analysis and projection of growth and performance of General Insurance Sector in India. The major focus of the study is to evaluate the role of the Government in regulating the insurance industry and on the growth and performance and marketing strategies. The analysis revealed that the general Insurance penetration in India is very low as compared to international standards in general and in rural sector in particular. Liberalization of this sector has contributed a lot of opportunities for the growth of the rural market. The study found that the employees of the private sector insurance companies are more acquainted with the application of information and communication system than those from public sector firms, and consumers have less choice of products in the absence of tailor-made products to suit different categories of people. The private sector insurance companies are more cost-effective. The study will contribute to enhance the present knowledge in the field of insurance. The study recommends that the insurance regulatory and development authority should give more thrust on quality, service and discipline by insurers and related agencies.
It was the overall economic reforms of 1991 in India which paved the way for reforms in Insurance sector also. That was the time when State monopoly was taking its last breath and virtually the License Raj was on a death bed. Openness came across the sector and many sectors like Banking, Infrastructure , Telecom etc. were opened up. However this openness was not a complete one. There were still some retention of FDI caps in some sensitive sectors and Insurance sector is one of them. It may be recalled that while the reforms in various sectors of the economy were welcomed, there was considerable debate on the need for reforms in Insurance industry. Fiduciary obligations between Insurers and the insured was a big issue but once the legislation was put through, the actual process of inducting private players into the market had gone off smoothly. Insurance sector is perhaps the only sector in this country where the transition from State monopoly to free market has been hassle free. To wind up the things, one can say that India has maintained a well balance between reforms and regulations and this is the gist of the present book.
The role of the insurance sector and links into other financial sectors have grown in importance. The importance of financial institutions in economic growth, especially the role of stock markets and banks is greatly discussed in both theoretical and empirical studies, but the insurance sector has not received ample attention in this respect. We fill this gap by reviewing theory and empirical evidence and identify channels of influence. This book examines the existence of casual relation between insurance sector development and economic growth in Iran for the period 1960-2010. In this investigation we apply the Augmented Dickey-Fuller Unit Root test, the Johansen’s Co-integration test and the Granger Causality Wald test based on Vector Auto Regression (VAR) model. According to our findings, there is a unidirectional causality relation from insurance development to economic growth. Therefore, insurance development is an important prerequisite for stimulating economic growth in Iran.The analysis should be useful to students and researchers in Economics and Management fields, and all institutions that are active in the economic development field, particularly insurance companies.
This paper focuses specifically on the 2004 banking sector reforms in Nigeria and its concomitant. The study noted that the reforms focused on strengthening the financial systems through banking sector consolidation, foreign exchange market stabilization, interest rates restructuring and the pursuit of stabilization as against structural adjustment policies for monetary and inflationary controls. The paper investigates the effect of banking sector reforms on economic growth in Nigeria over the period 1999 - 2009.
This book offers an investigation to the links between financial sector reforms and economic growth in Nigeria. It discovered the channels through which financial liberalization contributed to the economic growth in Nigeria. This book reveals that all is not well with the McKinnon and Shaw postulation as interpreted and applied to Nigerian economy. The target of achieving positive and rising real deposit rate via increase in nominal interest rate was obviously a wrong approach given the structure of the economy and the connection between the financial system. A more effective means to improve real interest rate would be through macroeconomic stabilization and fiscal reforms. However, the book revealed a linkage between financial sector and economic growth. Although the results were mixed, the estimated results reveal that changes in exchange rate affect GDP i.e. exchange rate and have significant impacts on economic growth. In addition, a positive impact in exchange rate will have a positive impact on economic growth. Hence, these results show the need to sustained reforms in the financial sector in order to enhance economic growth.
The New Economic Policy announced in year 1991 laid emphasis on liberalisation,privatisation and globalisation.Main objective of new economic policy is to promote competition and efficiency. Industrialisation has been viewed as an economic process by which structural transformation of subsistence economy can be achieved.The Productivity performance enhance the international competitiveness of the country.The present book analyze the productivity trends in manufacturing sector of punjab state,and to evaluate the impact of economic reforms on productivity growth in manufacturing sector of punjab.In order to elevate the productivity growth in state,it is imperative to speed up the flow of incentives and resources toward this state.The fine tuning of ongoing liberalisation,privatisation and globalisation programme is thus need to improve the efficiency of factor inputs in the punjab manufacturing sector.
Revision with unchanged content. China began its current economic reform in the late 1970s. Since initiating its reforms, China has restructured its banking sector while launched equity market in early 1990s. China has been experiencing a rapid growth at an average rate over 8 percent per annum during the last two decades. Does the development of financial intermediaries contribute to the economic growth in China? This study examines how financial intermediaries in China influence the real sector growth. A particular focus is mainly set up on the direction of causality between banking sector and/or stock market and economic growth. The analysis should help to answer the questions: - Does each economic region in China adopt the same growth pattern? - Does the development of banking sector lead to the real sector growth? - Is the development of banking sector a product of economic growth? - Does the same direction of financial-growth causality apply to the entire country? - Does the development of stock market lead to the economic growth? What kind of role has the stock market been performing in China’s economic growth? The book is addressed to economic analysts and researchers who are interested in studying the financial-growth nexus in the context of China in a statistical manner.
Developing countries are in search of better policies to achieve higher economic growth since growth reduces poverty. Development of financial sector is one of the major economic policies since financial development influences economic growth and reduces poverty. Economic literature over the years has established that a sophisticated stock market is a critical factor for long-run economic growth.Given the importance of stock market for developing countries, this study empirically examines the relationship between stock market development and economic growth using the time-series for India over the period 1980-2008. Second, the study also statistically detects the direction of causality (cause and effect relationship) in a multivariate setting between stock market development and economic growth, which is vital for policy implication. This study provides important channels of stock market-growth linkages which is important for developing countries like India.
In 1992, the Reserve Bank of India launched banking sector reforms in India to create a more profitable, efficient, and sound banking system.The reforms include the competition enhancing reforms, reforms enhancing role of market forces, prudential reforms, supervisory reforms, institutional and legal reforms, reforms related to the customer service in banks, technological reforms, and the payment and settlement systems reforms.In the context of these banking sector reforms, the present book attempts to discuss the banking sector reforms in India and to analyze and compare the financial performance of commercial banks in India on various aspects such as profitability, liquidity, capital adequacy, assets quality, and off-balance sheet strength in post reforms era. Moreover, it also attempts to extract the financial ratios which significantly predict the financial performance of commercial banks.The book should be especially useful to banking officials, researchers in the area of banking and finance, stakeholders of commercial banks, or anyone else who is interested in understanding the dynamics of financial performance analysis.
The Aim of this Book is to examine relationship of economic growth, economic development and economics of environmental process in India in general and Gujarat in particular. Economic development process has to have taken care of environmental pollution both natural and manmade. Environmental Economics and Resource Economics have evolved from various branches of economics such as welfare economics, macro economics, industrial economics, public finance etc. After economic reforms in 1991 in India, economic growth and industrialization processes have created tension for management of environmental pollution in terms of water pollution, solid waste, air pollution, noise pollution, traffic pollution etc. Global Warming has also challenged availability and utilization of resources for present and future generation along with sustainable growth of economy as well as sustainable environmental pollution. However, this study is confined to the study of industrial and water pollution in Gujarat State.
Economic development has often been associated with structural changes in any economy.The 1990's ushered a remarkable shift from the long-established principles held since Indian Independence(such as self-reliance and socialistic policies of economic development)which resulted in the isolation,overall backwardness and inefficiency in the Indian economy. The new economic reforms of '91 aimed at making India the fastest growing and a globally competitive nation.These reforms with respect to industrial sector,trade and financial sector aimed at making the Indian economy more efficient.Furthermore,the technical transfer from the multi-national companies put India on a higher footing. However,unlike various other economies India’s growth path has been characterized by service-led rather than manufacturing-led growth. This book attempts to study the distinctiveness of the pattern of India’s economic growth over the past few decades, which has probably gone unnoticed, as the euphoria over emergence of India as one of the fastest growing economies of the world seems to have overshadowed the fact of rather intriguing and somewhat a historical pattern of its growth.
This book attempts to analyse the importance of education for the economic growth of a country. It outlines the time series analysis of education growth in India along with the growth of Gross Domestic Product (GDP), exports, social sector expenditure and Foreign Direct Investment (FDI). This book focuses on the regional disparity in attaining education in different states of India by applying convergence analysis. It is visualized that the findings of the study would be useful in particular to the students of economics, researchers in education sector as well as academicians interested in analyzing the economic growth and productivity.
Riding on the success of the first generation reforms initiated in Indian Banking Sector during 1991-92, the Second Generation Banking Sector Reforms were introduced in 1998 in India . These reforms have unleashed tremendous changes in the sector, as a result of that number of initiatives have been taken to remove or minimize the distortions impinging upon the efficient and profitable functioning of banks in India. The author fondled to elucidate and analyses the performance of Commercial banks in India in terms of operational performance during the pre and post reforms period with reference to the variables of branch network, deposit mobilization, credit deployment, priority sector finance, non-performing assets and managerial performance of Indian commercial banks. Thus this book evidently explains the importance of reforms initiated to the academicians, researchers in carrying further works on the banking sector reforms in India and to the policy makers by providing more inputs for further reforms hence this will become a manual for policy makers, bankers ,academicians and other relevant ones.