At the end of the day, only if entrepreneurs are held liable for their business decisions will they make those decisions responsibly. Yet it is crucial for market processes that new enterprises step in to replace those that fail. The economist Joseph Schumpeter, who died in 1950, called this concept “creative destruction”.
The genesis of financial sector reforms in India could be attributed to the recommendations of the Committee on the Financial System- chaired by Shri M Narasimham in 1991 (popularly known as Narasimham Committee-1).