This study uses historic flow of funds data in India and examines the movements of funds across financial and non-financial sectors of the economy. The study develops a new theoretical framework to map the multidimensional nexus across macro-economic aggregates and to integrate the NIP and FOF accounts. The financial system has witnessed discernible deepening - increased preferences of households for financial assets - and widening -availability of a wide spectrum of financial services and instruments with varying degrees of returns, risks and liquidity. The household sector is the only surplus sector in the domestic economy and it uses its financial saving surplus to finance the resource deficits of the private corporate business and government sectors. The banking sector played a dominant role in the allocation of resources in India as compared to other financial institutions.