These factors have led to increased interlinkages across financial institutions and markets. In the more recent period, the various segments of the financial market in India have, by and large, exhibited stability. RBI will endeavour to provide an enabling environment for healthy development of financial markets. The enabling environment also encompasses harmonization of reforms in financial sector with the real sector.
Large gaps exist in demand supply of infrastructure services such as transport, electricity, ports etc. It needs to be emphasized that sound macroeconomic policies and a competitive domestic sector improve the capacity of the economy to absorb higher capital inflows, reduce the cost of capital, translate external flows into higher investment levels and provide cushion against unexpected shocks in more liberalized external markets.