Consequently, if the Indian economy has to fully realize its optimum potential, the financial sector would have to play a pivotal part. As we all know, our financial sector is predominantly bank-centric and therefore, the performance of the banking sector is crucial to the fate of the economy.
Even then, the new tax system for 2001 will boost average purchasing power by 4% or even more, representing a powerful stimulus for consumption. Many commentators view the new millennium as the start of a “new economy”. ICT developments will undoubtedly have a major impact on world economic performance; still, there is no indication whatever suggesting that economic laws have become fundamentally different.