Economic Survey flags financialisation risks as financial sector evolves fast
New Delhi, Jan. 31 -- India's financial sector is witnessing a moment of positive flux and the dawn of a new era but emerging trends like 'financialisation' wherein financial markets influence policy and outcomes need to be closely monitored, as per Economic Survey 2024-25 tabled in Parliament on Friday.
"One critical risk to guard against is the dominance of financial markets in shaping policy and macroeconomic outcomes, a phenomenon known as 'financialisation.' The consequences of financialisation are evident in advanced economies, where it has led to unprecedented levels of public and private sector debt- some visible to regulators and some not," the Survey said.
The survey said that as India strives to align its financial system with it...
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