Page 41 - Banking Finance November 2017

ARTICLE

A STUDY OF

INDUSTRIAL FINANCE

AND ITS

CONTRIBUTION

TOWARDS RISING

NON- PERFORMING

ASSETS OF PSU BANKS

Introduction by squeezing costs, revamping management, and relying on
cheap labour and new technology. However, this has also
Indian Industry accounts for nearly 26% of GDP and employs
reduced employment generation even by smaller manufac-
nearly 22% of the total workforce. India's industrial manu-
turers who earlier relied on relatively labour-intensive pro-
facturing GDP output in 2015 was 6th largest in the world.
cesses. The major industries which contribute towards this
The Indian industrial sector underwent significant changes
sector are
as a result of the economic liberalisation in India economic
Y Petroleum products and chemicals,
reforms of 1991, which removed import restrictions,
brought in foreign competition, led to the privatisation of Y Pharmaceuticals,
certain government owned public sector industries, Y Engineering,
liberalised the Foreign direct investment (FDI) regime, im-
Y Gems and jewellery,
proved infrastructure and led to an expansion in the pro-
duction of fast moving consumer goods Post-liberalisation, Y Textile,
the Indian private sector was faced with increasing domes- Y Mining,
tic as well as foreign competition, including the threat of
Y Defence,
cheaper Chinese imports. It has since handled the change
Y Pulp and paper
About the author
Finance is considered as the life-force of industry. Without
getting adequate finance industrial development is not at
B. B. Lenka
Chief Manager all possible. Due to the lack of adequate finance, industrial
Union Bank of India Staff College development in India could not achieve a significant posi-
Bangalore tion and shape. Industries require short term, medium term
and long term finance for meeting their requirements of

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