For instance, can the GST Council expand its scope and agree to work on other areas of reforms to generate national consensus? (7.4) Co-operative federalism should not, however, breed inertia. Alongside co-operative federalism, there has to be competitive federalism. The ranking of states on the parameter of ‘ease of doing business’ has generated very healthy competition among states.
As technology and markets improve to the point that some relatively transparent small business borrowers can be financed outside the bank, other, more opaque potential borrowers that previously had information and other problems too serious for even a bank loan will enter the bank intermediation process.