Emergence of Bancassurance in India

The Indian economy has travelled a long way from a restricted close economy during 1950s to an open and liberalized economy as witnessed right now. The change has not happen in one single day as it took almost 40 years to bring the necessary changes for the bilateral growth of the Indian economy vis – a – vis world economy. During the restricted close economic phase most of the industrial growth was in the hand of government and entire focus was given for the growth of industrial sectors and infrastructure development. It was an era of planned development and under various planning period the belief was that the growth at the higher level will ultimately ‘trickle down’ to the lower level of the society and thus this growth model was known as ‘trickle-down theory.’ But the theory was not sustained as it failed to provide the desired result. But it was only during late 80s the policy makers decided to accept the role of other sectors other than industrial sectors for the betterment and overall growth of the Indian economy. Traditionally, India is a agrarian economy so role of agriculture sector can’t be underestimate but along with these known areas the other major area which started showing its result is service sector. Service sector due to its low capital investment and high return has shown its impact and among various service sectors in service industries, f inancial sector make a signif icant progress in terms of overall economic development of the country.