Financial institutions in India:
- Changes in science and technology led to rapid growth in the field of industry and commerce. As a result various business units established. These units needed capital for short-term as well as long-term. Traditional financers i.e. individual investors and commercial banks were unable to satisfy the huge demand of finance.
- Under such situations India saw the need of establishing specific financial institutions that could lend money to business units for their long-term capital requirements.
- When India started huge projects under its five year planning it laid strong emphasis on industrial development. It also put emphasis on establishing financial institutions for both private and public sector for long term financial needs.
- Government of India established few national level financial institutions as well as state finance corporations with an aim to help small, medium sized and even large scale business units obtain finance.
Some of the main financial institutions providing long-term finance are:
- IFCI (Industrial Finance Corporation of India)
- IDBI (Industrial Development Bank of India)
- ICICI (Industrial Credit and Investment Corporation of India)
- GSFC (Gujarat State Finance Corporation)
- GIIC (Gujarat Industrial Investment Corporation)
