在一个经济体系根本不稳定的欠发达国家(Bharosa et al.， 2013)，如果市场力量正常运作，一个组织就不可能获得高的投资和产出增长率(Bharosa et al.， 2013)。结构不平衡和经济僵化的存在是减缓这些力量运作的主要原因。所有人都应该非常清楚，经济的发展既不是自发的，也不是自动的(吉尔-加西亚，张和普隆-希德，2016)。相反，有人观察到，在系统内部，有自动的力量，往往保持系统连接到一个较低的水平。因此，为了打破恶性循环，政府应该发挥重要作用，必须干预市场的力量，因为一个欠发达的国家永远不想被卷入恶性循环的网络。外汇管制、行业许可、外汇管制和价格管制是为了打破这个循环而实行的各种管制。
农业金融、出口金融和工业金融是由专门机构提供的，该机构的设立是为了应付日益增长的资金需求。为了提供必要的金融资源，印度近年来设立了农业再融资与发展公司、工业发展银行和工业金融公司(Francis et al.， 2013)。
In order to break down the ferocious circle of under developed equilibrium, there is a need for comprehensive government planning of the process of economic development. In addition, in order to meet these challenges, institutional frameworks have been built up and on the other hand, Planning Commission has been set up.
(ii) Institution of Controls
With the proper functioning of the market forces, an organization cannot attain a high rate of investment and growth of output, in a under developed country, where the economic system is not at all stable (Bharosa et al., 2013). The existence of structural disequilibria and economic rigidities are the main reasons that have slowed down the operation of these forces. It should be very much clear in the minds of all that the development of an economy is neither a spontaneous affair nor automatic affair (Gil-Garcia, Zhang and Puron-Cid, 2016). On the contrary, it has been observed that within the system, there are automatic forces that tend to keep the system connected to a low level. So in order to break down the vicious circle, an important role should be played by the government and must interfere with the forces of market, because an under developed country never wants to be caught up in the web of vicious circle. Exchange control, industrial licensing, exchange control, and price control are the various controls, which have been instituted in order to break the circle.
There is need for the introduction of organizational and institutional reforms to be made by government, as there are some defective organization and outmoded social institutions, which are coming in the way of development as a negative factor. The various reforms are tendency reforms, nationalization of insurance and banks reform of managing agency system, introduction of cooperative farming, imposition of ceiling on land holding and abolition of zamindari system and many other reforms, which had been introduced since the planning, was started in India.
Agricultural finance, export finance, and industrial finance has been provided by the special institution, which has been set up in order to cope with the rising need for finance. For providing the necessary financial-resource, Agricultural Refinance and Development Corporation, Industrial Development Bank, and Industrial Finance Corporation have been set up in India in recent years (Francis et al., 2013).