International Journal For Multidisciplinary Research

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Contour of the Composition of Flow of Funds in India

Author(s) Dr. Anil kumar
Country India
Abstract Flow of funds characterize economic potential of the economy as they represent mobilization of total amount fund from different sources in it at given period of time.It is imperative to have through knowledge of financial system in order to understand the circular flow of funds among all the sub sectors of it. Financial system comprise of financial market, financial institutions, financial instrument and financial services. flow of funds simply shows a in flow and out flow of cash from various sectors at a particular period of time. account of flow funds is to be taken into account to ascertain the the literal position of the flow of funds that help to appraise of the economic health of the economy. Flow of funds account approach was promoted the by Morris Copeland to have knowledge of clear flow of cash across six sectors- households, Government, private corporations Business sector, Banks, Other financial institutions (OFIs) and the Rest of the World. Examining these flows of funds provides a simple but effective portrait of the nature of financial claims in an economy, and acts as a very useful adjunct to the national income accounts in understanding the current and likely future trajectories of an economy. Interestingly, due to the pioneering efforts of the then Finance Minister, C.D. Deshmukh, India was an early adopter of a domestic Flow of funds framework and has always had one of the most extensive and up-to-date sets of data on money flows for developing economies. Hence, it is clear that flow of funds analysis gives a common base for studying a wide range of problems and challenges which basically concerning the financial sectors and its relationship with the economy
Keywords -
Published In Volume 1, Issue 1, July-August 2019
Published On 2019-07-25
Cite This Contour of the Composition of Flow of Funds in India - Dr. Anil kumar - IJFMR Volume 1, Issue 1, July-August 2019.

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