Economic future lies in financial markets

Over-dependence on foreign capital can create volatility

Indians are great savers but not so good investors. Their investment pattern is probably dictated by generations-old biases. India was constantly invaded by foreigners,hence savings were invested in movable asset like gold. Our modern financial system is about two centuries old, with most of the regulatory set-up about two decades old. This created bias towards touch and feel instruments like real estate. Before the advent of the Securities and Exchange Board of India (Sebi) many companies disappeared with investors’ hard-earned money in both debt and equity capital. This created preference for safer instruments like government-guaranteed products. This bias for capital