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Industrial finance aims to provide medium and long term finance for industrial enterprises engaged in manufacturing and other specified industrial activities. A good number of institutions were promoted to help entrepreneurship development, provide finance for industry.

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srmshyam
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16 views

CF

Industrial finance aims to provide medium and long term finance for industrial enterprises engaged in manufacturing and other specified industrial activities. A good number of institutions were promoted to help entrepreneurship development, provide finance for industry.

Uploaded by

srmshyam
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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India has made considerable economic progress since its Independence.

Most noticeable are the expansion and diversification of production both in industry and agriculture. New technologies were introduced in many industries. Industrial investment took place in a large variety of new industries. A good number of institutions were promoted to help entrepreneurship development, provide finance for industry To provide the financial infrastructure necessary for industry, the Government set up a number of development banks. The principal function of a development bank is to provide medium and long term investments. They have to also play a major role in promoting the growth of enterprise. With this objective, the Government of India established the Industrial Finance Corporation of India (IFCI) (1948), Industrial Credit and Investment Corporation of India (ICICI) (1955), Industrial Development Bank of India (IDBI) (1964), Industrial Reconstruction Corporation of India (1971), Unit Trust of India (UTI) (1963), and the Life Insurance Corporation of India (LIC) (1956). For financial assistance to small entrepreneurs, Finance Corporations were established in all states on the basis of an Act that was passed by Parliament in 1951. In addition to this, the National Small Industries Corporation was also established at the Centre and a Small Industries Development Bank of India was established in 1989. Industrial finance aims to provide medium and long term finance for industrial enterprises engaged in manufacturing and other specified industrial activities. It aims to provide (i)project finance for expansion, diversification and modernisation activities through loans in Indian rupees and foreign currencies(ii)financial services such as merchant banking, allied services, leasing & hire purchase (iii) promotional services such as financial support for the promotion and growth of industries, guidance to small and medium scale entrepreneurs in project identification, formulation, implementation and operation of the enterprises.

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