We focused on developing markets in a sequenced and calibrated manner. Early in the 90s, we headed into a balance of payments crisis. The stabilization and structural adjustment programmes that followed marked an inflexion point in India’s economic and financial development. Banking sector reforms helped strengthen the banking system and made it more competitive.
The new millennieum brought with it a new momentum where India made a decisive break from the “Hindu rate” and shifted onto a higher growth trajectory. This was also the period when Basel II norms were adopted, the payments system was substantially revamped, and the focus shifted to issues of inclusion.