Conclusion To conclude, ensuring an acceptable degree of financial stability is a never-ending process. Looking ahead, the vulnerability to real sector shocks has the potential to significantly affect financial stability in India.
The major sources of shocks in India are very sharp increases in oil prices and extraordinary monsoon failures and other natural calamities with consequent impact on the agricultural sector, spilling over to other sectors of the economy. Therefore, the weight to financial stability in India is higher than in many other countries.