The authors of this report are open to an interactive approach with the government to discuss any of the recommendations made in the report.

The financial system is a medium for transfer of funds between the savers, both domestic and foreign, and the users, viz. the government and the industrial, infrastructure and agricultural sectors.

An increase in the flow of funds into the system without ensuring that the user segment has the capacity, both in terms of demand and financial health, to absorb the funds could lead to a breakdown in the financial system.

On the other hand, a high demand for funds from the government and the industrial, infrastructure and agricultural segment without the support of an efficient financial system and adequate mechanisms and incentives to ensure that the flow of funds is commensurate to the demand could constrain industrial growth and impact its global competitiveness.

Considering the inter-linkages of the financial sector with the various other sectors in the economy, a coordinated approach needs to be adopted in order to ensure that the development of the financial system meets the objectives of the real sector.

It is therefore suggested that the Government of India form a Group comprising representatives drawn from the different concerned ministries as well as the industry and coordinated by the Prime Ministers Office (PMO) in order to ensure implementation of the recommendations in a time-bound manner. The group should have extensive powers subject to clearance by the Cabinet.

In order to measure the progress on implementation of the recommendations, it is suggested that the Advisory Council carry out a periodic review, preferably on a monthly basis, on the progress achieved.