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A review of the capital market in India (English)

This report captures the most important features of the capital market in India and the main developments concerning this market since the country became independent. The major features of progress in India include: Despite low incomes, it has been possible to increase substantially the flow of savings to financial institutions over the last decade. The commercial banks have expanded the network of their branches and enlarged their role in financing industry, trade, as well as in collecting savings. Substantial amounts of savings have been collected through the governments small savings schemes. Life insurance has shown marked expansion in recent years. Provident funds also operate over a fairly wide area in both the public and private sectors. The activities of cooperative credit institutions have expanded considerably over the last decade, mainly as a result of strong support by the government and increased credit made available by the central bank at low interest rates. The network of special finance corporations has been providing substantial funds to large and medium scale industries, mainly for financing fixed investment. The market for securities is well-organized and quite active. The central bank has been playing an important role in expanding and diversifying the system of institutional credit facilities. A scheme for guaranteeing partially the loans advanced to small scale industries by banks and other financial institutions has been introduced.




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Govil, Shiva K.

A review of the capital market in India (English). Central Economics staff series ; no. EC 111 Washington, D.C. : World Bank Group.