The Indian financial system includes financial establishments, financial administrations, financial instruments and financial markets. Every one of the four components are firmly related and work correlative to one another. They are assuming a huge part for the activation and allotment of funds. The Indian financial system targets fostering a functioning capital market. There has been momentous development of Indian capital market since the original change began in 1991 with the idea of LPG (Liberalization, Privatization and Globalization). The subsequent age change began in 1997 with the bundle of financial area changes, monetary policy changes, modern policy changes, public area policy changes, unfamiliar speculation policy changes and so forth have sped up the speed of improvement of the Indian financial area just as of the capital market. As needs be, new financial foundations and instruments were created with the goal of modernizing the financial area. 'Shared Funds, Discount and Finance House of India, Money Market Mutual Funds, Certificate of Deposit, Commercial Paper, Factoring, Venture Capital, Treasury Bills and so forth are serving the requirements of people, establishments and organizations.

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Keywords: Growth, Mutual Funds, Commercial Paper, Certificate of Deposit, Money Market.