That the current annual GDP growth of around 8.5 to 9 per cent can be achieved in India with a level of gross domestic investment in the range of 30 to 33 per cent over the past 4 years suggests that the economy is functioning quite efficiently.
Thus our policy of gradual and sequenced reform cannot be said to have been at the cost of growth or efficiency. We need to ensure that we maintain this level of efficiency and attempt to improve on it further. As the Indian economy continues on such a growth path and attempts to accelerate it, new demands are being placed on the financial system.