Main sources of Industrial finance in India. How could India be benefitted from recent developments in internationals finance? Describe!

The main sources of industrial finance in India are following:

Industrial Development Bank of India (IDBI): It provides credit and other facilities for industrial development in the country. It provides long term finance for green field projects, as also for modernization, expansion and diversification. It has structured various product such as equipment finance, asset credit and corporate loans in order to eater to the diverse needs of its corporate clients.

Industrial credit and investment corporation of India Limited (ICICI Ltd.): It played a facilitating role in consolidation in various sectors of the Indian industry, by funding mergers and acquisitions. The ICICI group’s financing and banking operations, both whole sale and retail have been integrated into a single company effective from May 2002.

Small Industries Development Bank of India (SIDBI): It offers refinance, bills rediscounting lines of credit and resource support mechanisms to route assistance to SSI sector through a network of banks and state-level financial institutions. It also offers direct finance for meeting specific requirements of SSI sector.

Industrial Finance corporation of India Limited (IFCI Ltd): Its main financing comprises of projects finance, financial services and corporate advisory services. It provides custodial and investor services rating and venture capital services through its subsidiaries and associate companies.

Industrial Investment Bank of India Limited (IIBI Ltd): It offers a variety of financial products such as Project finance, short duration none-project asset-backed finance and working capital and other short term loans to companies.

Infrastructure Development finance company Limited (IDFC Ltd): It was incorporated in 1997 and was conceived as specialized institution to facilitate the flow of private finance to commercially viable infrastructure projects through innovative products and processes.

Industrial Reconstruction Bank of India (IRBI): It has main aim to revive sick industries and make them able to exist and compete in market by assistance.

State financial corporation’s (SFCs): It provides loans to need industries. They also promote shares and debentures, if required they would provide guarantee for loans of third parties. Apart from these through foreign investments, IPOs, these industries also get financial assistance.

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