Views of economists on this important issue viz. the inter-relationship between finance and growth, however, diverge. While some economists feel that finance drives the wheels of economic growth, others opine that the process of economic growth itself induces financial development. The available evidence seems to strongly suggest a bi-directional relationship between finance and development.
In other words, growth drives the evolution of the financial super structure and the financial super structure, by meeting the financing requirements of the economy, facilitate the process of growth. In the latter case, it is well appreciated that if the financing requirements of the economy are not adequately met and in time, it would affect the growth process adversely.