Financial sector reforms in India introduced as an element of the structural adjustment and economic reforms programme in the early 1990s have had a profound impact on the functioning of the financial institutions, especially banks. The principal objective of monetary sector reforms was to enhance the allocative efficiency of resources, ensure financial stability and maintain confidence in the national economy by enhancing its soundness and efficiency. After reviewing the literature if was found that not even one study has been seen to hide sufficient large span of time so overall picture of monetary sector reform’s impact could emerge. Also no other study was found which compared the impact of economic sector in pre and post reform period. Hence in the present study both the lacuna are filled taking long span of time to check the phenomenon and also comparing the impact in pre and post reforms period. The current study describes the requirement of the financial sector reforms in perspective of national macro-economic development policy and analyzes the impact of those reforms on the GDP and other macro-economic variables like inflation, gross capital formation. No doubt, the Indian economy has improved to an oversized extent under reform period but still some areas are lagging behind in their performance. Hence, in the present study impact of economic sector reforms on GDP, Inflation and Gross Capital Formation was studied. The symptoms chosen under financial reforms factor were banking sector reforms, capital sector and foreign sector.

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Keywords: Economy, Banking, Insurance, Financial Reforms, Capital Market, World Economy.