International Source of Finance for India - Dissertation Example

Download file to see previous pages Availing of foreign support is not a subject of shame for any country for those who are providing support today had them accepted the same earlier. Almost every developed state has had the support of foreign finance in order to enhance its own inadequate savings during the initial stage of its development. In the initial stages of development, significant foreign assistance may be required but slowly foreign support as a percentage of development expenses goes on retreating since the developing nations must gain knowledge of becoming self-reliant (Hukku, 1989, pp.12-13).

As a developing country, India depends greatly on international sources of financing. The rates of its personal saving are good, as a minimum among the one-third of the population of the country that isn’t living in scarcity. The rapid growth of the economy of India has created much wealth for some people and that wealth is finding places to grow. Some of it’s discovered its means out of the country, supporting the current wave of overseas acquirements. The rest of them stays home, mostly in Indian banks, accessible for collateralized use. There are various financial institutions and bodies that can fund direct investments in India and they are as follows: Overseas Private Investment Corporations, United States Trade and Development Agency, United States Agency for International Development, United Nations, Asian Development Bank, multinational financial aid organizations, bilateral financial aid organizations, local stock markets, and branch offices of foreign banks (Makar, 2010, p.205). This paper will give emphasis the role of Foreign Direct Investment (FDI) and the World Bank in India.

Aims and Objectives
Aims: The aim of this paper is to explore why there is a need for international sources of finance for India as a developing country and how India uses those sources for its own development.

Based on the background of the study and problem formulation, the study revolves around four major objectives.
• To identify the importance of international sources of funds for developing countries such as India
• To identify the role of foreign direct investment in a developing country like India
• To identify the role of the World Bank in a developing country like India
• To identify the purpose of FDI and World Bank in India
• To understand how the international sources of funds work
• To understand how India uses international sources of funds for development
Hypothesis
The study aims to verify the following hypotheses:
• The impact of FDI and World Bank on Indian economic development
• Utilization of international sources of funds ...Download file to see next pages Read More