Book Review

FINANCIAL SECTOR LIBERALISATION IN INDIA –THEORY   AND EMPIRICS

---Regal Publications,NewDelhi,page,xi+352, Price- Rs.1480/-

This edited volume is the outcome of presented and selected papers of the Mid Year Seminar of Bengal Economic Association held in the Vidyasagar University,Midnapore on 6^th October,2012.

It contains 21 articles  which explained the theoretical as well as empirical findings in the financial sector liberalisation in India.The book helps in understanding of interplay of various issues and forces that are emerging in this sector at present time.

Hiranya Lahiri,Chandana Ghosh and Ambar Nath Ghosh in their paper”Financial Sector Liberalisation and RBI’s policy Dilemma” argues that a rate cut by RBI  is likely to reduce growth rate and raise the rate of inflation through a model.

Prof.Biswajit Chatterjee in the paper , “ Financial inclusion:Issues and Challenges with Special Reference to India’s North –East” explained that financial inclusion should emphasise the low income people.

P.S. Das in his paper,” Economic and Financial Stability in the Post-reform India in context of global financial crises” considering the world economy  and the Indian economy .

Arindam Gupta in his paper on “Inclusion Driven Reform in Indian Banking Sector:The Government and the people” examined the role of the banking sector in promoting financial inclusion.

Asim Kumar Karmakar in his paper “liberalisation of the financial sector in India and China:An Overview” seeks to describe financial liberalisation and development in both India and China emphasising on banking sector liberalisation.

Dhiraj Kumar Bandopadhaya in his paper “ Financial Sector Liberalisation in India –An Examination of Linkage between Financial and Real Sectors” reviewed macro economic policies of RBI during the reform period.

Partha Sarker on his paper,”India’s Experiences with financial liberalisation” evaluated reform policies of the financial markets which became healthier due to liberalisation.

Anindya Mukherjee in his paper, “ Financial sector liberalisation in India vis-a-vis the political economy of our epoch” showed the fall out of hegemony of international finance capital.

Saktinath Bandopadyaya on his paper , “ The regulatory affairs of the Indian Financial System in the Backdrop of the 2008 financial crisis” identified reasons of the crisis and its regulation in India.

Anupam Parua in his paper “ Scam –prone India Inc:A study of impact of reforms  measures” attempted to list different reform measures in security market in recent years as well as to trace the impact of such measures.

Debasish Mukherjee in his paper , “ Financial sector reforms in India with special emphasis on the Banking sector reforms” gave brief account of the financial sector reforms in India identifying the emerging issues and exploring the prospects for further reform and assess the reform programme.

Ramesh Chandra Das, on his paper, “Interlinking among NPA,investment in government securities and credit-deposit ratio : A case study for India in reform period” examined trends of credit deposit ratio during reform period and found no causality between NPA and security investment.

Bratati Dasgupta in her paper,”Inclusive growth  and urban cooperative banks in the light of financial sector reforms in India” attempted the need for financial inclusion along with measures  and suggested to include environment problems including urban cooperative banks.

Sebak Jana and Kaberi Sarker in their paper , “Efficiency analysis of the district central cooperative banks in WestBengal” found variation in respect of different key financial indicators for the DCCB using DEA methodology during last decade.

Sarbapriyo Ray and Mihir Kumar Pal in their paper , “Exploring inflation and stock price behaviour in selected Asian Economics”  examined relationship between inflation and  stock prices in Hongkong, Singapore,Japan,Korea  and India and found causality and cointegrating relationships.

Rajnarayan Gupta in his paper, “ An empirical investigation into the Linkage between commodity derivative and spot market in India” investigates into the rationale behind such a conservative attitude towards the market and examines the ill effect of the market on the economy.

Bikas Das in his paper , “ Moving of Mutual Fund from infancy to Adolescence through liberalisation”  tracks various performances of mutual funds in India.

Kalpataru Bandopadhyaya and Tarak Nath Sahu in their paper, “ A critical view on rate of interest in microfinance sector in India” examined the riskiness of microfinance and ample scope to reduce interest rate.They want  review  of this sector.

Mahasweta Bhattacharjee in her paper , “ Impact of liberalisation on financial performances of public sector GIS in India” revealed that the major impacts on public sector non-life insurance companies due to theventry of private players to this area and how they are tackling the challenges from the private players and how successful they have been in facing such challenges.

Debesh Bhowmik ( me) in his paper , “Fiscal reform in India : Convergence and cointegration”  attempted to test the fiscal convergence among Indian states taking fiscal deficit and debt/GDP  during 1990-91 – 2011-12 and showed cointegration.He found no fiscal convergence of Indian states.He also found cointegrating relationship among fiscal deficit ,growth rate,inflation rate,money supply,current account deficit, non developmental expenditure,government liabilities and revenue deficit.He commented that FRBMA needs reform for its ineffectiveness.