” national bureau of economic research working paper 12659 ( cambridge, mass. : nber, 2006 ). ( “ many financial decisions that individuals face are complicated and daunting for those who are not financial experts.. by collapsing a multidimensional set of options into a binary choice between the status quo and the preselected alternative, this intervention increases participation rates by 10 to 20 percentage points among affected employees. ” ) ; sheena s. iyengar, wei jiang, and gur huberman, “ how much choice is too much? : contributions to 401 ( k ) retirement plans ( pdf ), ” pension research council working paper ( philadelphia : university of pennsylvania, the wharton school, prc, 2003 ). ( “ using data from nearly 800, 000 employees, … results confirm that participation in 401 ( k ) plans is higher in plans offering a handful of funds, as compared to plans offering ten or more options. ” ) 20 see, e. g., daniel navarro - martinez, et al., “ minimum required payment and supplemental information disclosure effects on consumer debt repayment decisions, " journal of marketing research, vol. 48 ( november 2011 ), journals. ama. org / doi / pdf / 10. 1509 / jmkr. 48. spl. s60? code = amma - site. ( “ they find that while presenting minimum required payment information has a negative impact on repayment decisions, increasing the minimum required level has a positive effect on repayment for most consumers. ” ) see, e. g., bridgette c. madrian, “ matching contributions and savings outcomes : abehavioral economics perspective ( pdf ), ” national 8 / 11 bis central bankers'speeches bureau of economic research working paper 18220 ( cambridge, mass. : nber, july 2012 ). ( “ indeed, automatic enrollment is an extreme form of simplification ; individuals who want to save need not do anything. psychologists have long recognized that choice complexity can affect decision - making outcomes. one result is procrastination — individuals put off decision making as choices become more complicated. ” ) ( internal citations omitted. ) 21 see, e. g., dean s. karlan, et al, “ getting to the top of mind : how reminders increase savings, ” national bureau of economic research working paper 16205, ( cambridge, mass. : nber, july 2010 ). see, e. g

. 0 17. 8 31. 5 30. 2 16. 9 40. 1 23. 3 33. 1 35. 6 20. 4 22. 9 14. 9 36. 4 15. 8 41. 4 28. 1 22. 7 29. 4 22. 1 20. 7 17. 2 22. 6 brazil china india indonesia korea mexico philippines south africa thailand 2. 6 7. 9 4. 3 2. 4 1. 5 3. 8 3. 9 2. 6 3. 4 9. 9 4. 0 4. 1 6. 9 5. 7 6. 0 8. 2 10. 7 6. 9 5. 1 4. 3 4. 0 4. 7 5. 7 7. 6 4. 3 4. 2 4. 5 icor 2. 1 4. 8 6. 6 2. 3 2. 5 4. 1 4. 0 6. 2 4. 2 5. 5 3. 8 3. 6 4. 6 3. 6 8. 8 10. 7 8. 0 4. 1 source : world development indicators, world bank. the evidence thus clearly demonstrates that india has achieved its growth in recent years with judicious use of capital accumulation while innovating to achieve significant productivity growth. a conducive macroeconomic policy framework, accompanied by greater efficiency in financial intermediation, which transmits appropriate signals with regard to the cost of capital, has contributed to this pattern of growth. policy changes have also contributed to the rapid growth in trade and capital flows, which have enabled the diffusion of newer technologies and management systems necessary for continuing innovation and productivity growth. this provides comfort that the improvements in productivity, can be sustained in the medium term. role of financial sector reforms in promoting innovation and growth the key issue for innovation and growth in financial sector development is how well the financial system is able to finance new ideas, new products and new entrepreneurs. in a repressed financial system, sans adequate risk management systems and limited depth of financial markets, banks are typically happy to fund incumbents, and exhibit little interest in funding new businesses and new ideas. as financial systems develop, larger corporates can go to the market directly and disintermediation takes place. so, banks have fewer incumbents to finance and so it can be expected that they would be pushed increasingly into financing more and more new projects, new entrepreneurs and new ideas. has this happened in india? financial sector reforms have covered almost all aspects of banking and