Role of Banks in Development of Indian Economy

ABSTRACT

Typically, banks play a significant role in manufacturing. To achieve the goal of rural development through rural manufacturing, however, one cannot state with certainty that banks are self-made. The Indian economy has emerged as one of the fastest growing economies in the world during the past few years. However, the sensitivity of the Indian economy in regard to the performance of the agriculture sector is usual, notwithstanding the strength of other economic science indicators and sectors. In 2008-09, for instance, the Indian economy increased by a calculable 5.7%, compared to a growth rate of 6% in the previous year. 9 percent during 2007-2008. This was primarily attributable to the decline in the agriculture industry. a growing number of academics and policymakers are of the opinion that the agricultural and rural sector will play an outsized role in the long-term expansion of the national economy. If the agriculture sector underperforms, the manufacturing and repair sectors cannot support economic expansion. This article sheds light on the potential role of the bank in collaboration with skilled service providers in rural manufacturing.

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