Top Research Papers on Finance in India

Access to finance by the poor and vulnerable groups is a prerequisite for poverty reduction and social cohesion. This has to become an integral part of our efforts to promote inclusive growth. In fact, providing access to finance is a form of empowerment of the vulnerable groups. Financial inclusion denotes delivery of financial services at an affordable cost to the vast sections of the disadvantaged and low-income groups. The various financial services include credit, savings, insurance and payments and remittance facilities. The objective of financial inclusion is to extend the scope of acti...

The goal of the present chapter is to review the extant literature to summarize and outline the broad contours of the work around monetary transmission channels in India as well as shed light on some of the key features and changes in the Indian financial system with an attempt to broadly link the two. Notwithstanding several changes since 1991, Indian financial markets are still a long way away from being an effective conduit of monetary policy. They do not provide banks with enough competition. Further liberalisation, like FSLRC-proposed changes, may change that.

Housing not only provides physical shelter but also has significant impact on the lives of the dwellers in terms of skills enhancement, income generation, increased security, health, self- confidence and human dignity. Housing finance development, therefore, plays a role in boosting equitable economic growth and reducing poverty through helping households build assets, improving living conditions, empowering the middle- and lower-income population, and strengthening communities. The House Building Finance Corporation (HBFC), which has traditionally dominated the housing finance sector, is now ...

Financial inclusion is a flagship programme started by the Reserve Bank of India to bring peopl e under the ambit of formal financial inclusion. Along apart with from providing credit under this scheme, the Reserve Bank has adopted a policy of providing credit through multiple channels viz., involving self -help groups (SHGs) and MFI, expanding the scope of the Business Correspondence (BC) model, simplifying procedures and processes for Micro and Small Enterprises (MSEs) and Adopting information and Communication Technology (ICT) solutions for greater outreach and lower Transaction costs. This...

The aim of this paper is to scrutinize the role of micro finance in the empowerment of people and the realisation of financial inclusion in India. While there are reservations about the efficacy of MFIs in handling public money, their growth and achievements demand attention and appreciation. Today the MFIs expect the government to empower them for mobilising savings. With increasing demand for rural finance, and the inadequacies of formal sources, the MFIs have immense opportunities in the new avatar of micro credit in India. However, in the light of recent experiences, and the need for quali...

Micro-finance institutions (MFIs) in most developing countries, including India, are seen as essential tools to eradicate poverty and raise the standard of living of rural poor. Therefore, the sound functioning of MFIs has a huge long-run impact on the outreach of the rural poor. However, the performance of MFIs is often measured in terms of their social impact on the rural poor, while the financial indicators are ignored. In this context, the study analysed the major determinants of the financial performance of the 20 MFIs in India using panel regression. The results of the study revealed tha...

S OF DOCTORAL DISSERTATIONS THE ROLE OF INTERNAL CONTROL AND FIRM-SPECIFIC CHARACTERISTICS ON FIRM VALUE Anju Kalluvelil Janardhanan BUSINESS RESPONSIBILITY REPORTING PRACTICES IN INDIA Alok Kumar BIBLIOGRAPHY : PANDEMIC FINANCING CONFERENCE PAPERS DEALING WITH WORKPLACE ADVERSITY IN EMERGING MARKETS Himani Oberai, Sanjaya Singh Gaur and Anand Mohan Agarwal IMPACT OF INNOVATIONS IN INDIAN AND U.S. STOCK MARKETS ON FRONTIER MARKETS OF AFRICA, MIDDLE EAST AND SOUTH ASIA Risha Khandelwal, Thadavillil Jithendranathan and Kanhaiya Singh 317

S OF DOCTORAL DISSERTATIONS IMPACT OF GLOBAL RECESSION ON THE EXPORT PERFORMANCE OF APPAREL INDUSTRY IN TIRUPUR G. Yoganandan IMPACT OF FOREIGN EXCHANGE RATE FLUCTUATIONS ON STOCK PRICES IN SELECTED INDUSTRIES Roshan Kumar BIBLIOGRAPHY : INTELLECTUAL PROPERTY

Traditionally, India’s financial system is known as bank-based. However, the capital market development during the last two decades indicates a shift towards a more market-oriented financial system. While banks finance the working capital requirement of firms, primarily, capital markets complement the banking system by financing the longer term credit needs. As against the debate on whether stock market development in developing countries has translated to higher growth for these countries, several policy documents by the Reserve Bank have emphasised that growth in India would require both a r...

This paper endeavors to investigate whether the Islamic financial system can tackle the issue of financial exclusion in India or not. The present study has made an earnest attempt to explore the discriminating factors behind choosing of the institutes (conventional or Islamic), in decreasing order of their importance. Data for the study are collected from 635 respondents, who are customers of Islamic and traditional financial institutes. The area selected for the survey is the state of Kerala, which is considered as the Islamic finance hub in India. The data collected are analyzed by employing...

Access to financial services or financial inclusion as a development perspective continues to enjoy global relevance. Access to finance continues to be a major impediment for a rural household to emerge out of poverty and destitution. In India as well, the pockets of poverty are coincided with the pockets of financial exclusion. Although lot of affirmative action has been done in this regard still more needs to be done. A big step in this regard may be to do away with the perception of looking at financial inclusion policy in isolation devoid of any interconnectedness with other development pr...

The rural sector occupies an important place in the Indian economy as 65% of the population resides there. There is a dichotomy in the structure of the Indian money market, with the people depending heavily on the money lenders and other indigenous sources of finance .With increasing diversification of agriculture the demand for agriculture increases. This outstrips the supply. It is imperative that agriculture and credit be made available at the right time.  A number of banks and financial companies have begun specializing in offering credit to the farmers. Rural finance can be considered as ...

This review discusses Y. V. Reddy's book India and the Global Financial Crisis Managing Money and Finance. The book is a collection of 23 select speeches which he delivered as the governor of the Reserve Bank of India during September 2003 to September 2008. It gives us a deep understanding of his approaches to some of the policy issues during those years. In particular, he discusses the positive impact of financial sector reforms on the functioning of the market and institutions in India. He also argues that there is a need for some caution in the pace of liberalisation. He explains some of t...

Infrastructure growth is sine quo non to the growth and development of an economy. India has been suffering from demand-supply mismatch in terms of funding requirements to finance infrastructure projects. Funding deficit of INR 14,60,784 crores has been estimated for twelfth five year plan (2012-2017). Introduction of Islamic finance can play a crucial role in order to bridge the gap and support India in achieving anticipated growth projections. The aim of the paper is to explore the possibility of funding infrastructure in India through Islamic financial instruments. The methodology consis...

This research examines how digital tools such as credit/debit cards, internet banking, mobile banking, and the Unified Payments Interface can empower individuals, particularly those who have been previously excluded from traditional banking systems in India.

This paper examines the role of consumer finance, a high growth segment of the Indian financial sector in promoting financial inclusion. Consumer finance involves granting credit to consumers to enable them to possess goods for everyday use. While the Indian financial sector is changing rapidly, a large number of households still rely on informal sources for unforeseen expenditure. The paper presents results of a survey of consumer perception on the role of consumer credit to financial inclusion. Financial inclusion or access to financial services is a major development goal for all nations ac...

This Debate contribution describes the promotion of digital rather than cash payments as a form of the financialization of finance, in its role as a payments system, with reference to recent Indian experience. The arguments in favour of reducing cash usage must be seen relative to the costs of digital payments, for both society and individuals. The drastic demonetization episode in India, which removed 86 per cent of the value of notes in circulation at one stroke in November 2016, was partly justified in terms of forcing a shift to cashless transactions. However, such a shift requires that ad...

Electronic finance scenarios in India, opportunities and challenges of e-finance for a developing countries like India are analyzed and their implications for consumers are reviewed.

The term microfinance is widely used to refer to institutions governing savings, credit, insurance and monetary payments by relatively poor people, including those regulated by both official laws and informal norms. Analysis of microfinance is widely framed as a purely micro issue, centered on the motivation and behavior of specific users and providers. However, such analysis is almost invariably located - whether explicitly or implicitly - in a wider view of how the state, markets and society institute poverty. In India as elsewhere, for example, private microfinance organizations is viewed p...

This paper attempts to analyse the profitability indicators of housing finance companies in India. Housing is one of the basic human needs and is second to the need for food and clothing. Feeling of having own house is a matter of immense pleasure for everyone. The need for purchase or construct a house brought out specialized housing finance institutions. Housing finance institutions play an important role in the Indian housing finance system. So there is a need to analyse the profitability of housing finance companies. The study is based on secondary data. Secondary data were collected from ...

India's present fiscal structure is the result of a gradual evolution, dating back to December 14, 1870 when the resolution of Lord Mayo, Viceroy of India, was issued. The Mayo resolution explained the scheme by which the Government of India envisaged enlargement of the powers and responsibilities of the Provinces. The process of decentralisation of functions and finances in India will complete 140 years with the termination of the recommendations of the Twelfth Finance Commission in March 2010. This book traces the developments in the federal structure of India over this period. The work prov...

One of the greatest dangers to the growth of developing countries is the middle income trap, where crony capitalism creates oligarchies that slow down growth. If the debate during the elections is any pointer, this is a very real concern of the public in India today. To avoid this trap, and to strengthen the independent democracy our leaders won for us sixty seven years ago, we have to improve public services, especially those targeted at the poor. A key mechanism to improve these services is through financial inclusion. Financial inclusion is about getting five things right: Product, Place, P...

Finance is a strategic decision making area where risk and return goes hand in hand. In this complex environment, global village concept has a wide range of responsibilities and opportunities. A new threat to business today i.e. commitment to countries to reduce pollution because of global warming is converted in to a opportunity by creating a market mechanism through Clean Development Mechanism (CDM). As a new branch of Environmental finance Carbon finance is applied to investments in GHG emission reduction projects and the creation of financial instruments that are tradable on the carbon mar...

The fiscal situation of the Central Government of India has worsened since the eighties. In the latter half of the eighties the fiscal and revenue deficits were in the range 7-8 and 2-3 per cent of GDP respectively. Fiscal consolidation was hence a major focus of the reform process introduced in 1991-92. The nineties have seen varied performance on the deficit indicators. The first half of nineties witnessed a decline in the deficits as a percentage of GDP. However, the latter half of the nineties and the early 2000s saw a reversal of this trend and the major deficit indicators climbed back to...

Savings, behaviour of the main sectors and trends in each are examined in some detail. The principal source of data used is the National Accounts, supplemented by budgetary data where relevant. The paper pays particular attention to the developments in recent years when the economy has had to adjust to a combination of unfavourable circumstances especially the second oil shock in 1979, the prolonged world recession, and the steady deterioration in the position regarding the availability of external resources. All these development imposed severe strains on the economy and a resource constraint...

It is suggested that low income countries need to spend $54 (Rs3240; £32; €39) per capita for basic healthcare services, whereas the average actual per capita health expenditure in these countries is only $27.

THE WAR, DECLARED BY Great Britain on Germany in September 1939, started far from Indian shores. Italy and Japan were still neutral. Yet it was clear, even at that time, that the war would spread and that the British Empire was as ill-prepared for hostilities in the new theaters of war as she was in Europe. It was decided to expand the armed forces, and action along this line was started at once in Great Britain, the Dominions, and the British Empire, including India. The British Government concluded an agreement, known as the Financial Settlement, with the Government of India1 concerning the ...

Till recently India was an exemplary instance of the use of development banking as an instrument of late industrialisation. The turn to and emphasis on development banking in the immediate aftermath of Independence is explained by two features characterising the Indian economy at that point in time: one was the inadequate accumulation of own capital in the hand of indigenous industrialists; and the other was the absence of a market for long term finance (such as bond or active equity markets), which firms could access to part finance capital-intensive industrial investment.

There has been a steep deterioration in State finances during the last decade as evidenced by sharp increases in revenue, fiscal and primary deficits, increases in their indebtedness and contingent liabilities, and decline in capital and maintenance expenditures. Low buoyancy of central transfers and spillover of central pay revisions have had the most adverse impact on State finances. However, the States’ own fiscal performance has also seen sharp deterioration. On the transfer system, the scheme proposed by the Ministry of Finance attempts to link a portion of transfers to fiscal reforms. Th...

There are two key health financing questions for India: (a) where should the money to pay for healthcare come from and (b) how should it be spent? Healthcare is a service with some peculiar characteristics that need to inform the search for answers to these two questions. This paper discusses possible answers to these questions in the Indian context.

TNDIA, with a population of more A than 360 million, is in that respect the largest country in the world with a federal system of government. Although the problems of federal government and finance are fundamentally the same in India as in other federalisms, the subject takes on special interest because of the country's ancient civilization; colorful history; and cultural diversity as evidenced by differences in customs, language, and religion. Poverty and the government's efforts to alleviate it are the most pervasive economic influences on public finance. Recognizing the importance and likel...

~DucATIONAL SYSTEMS, like all modern organisations, run on money. We need more resources for education--both for schools and colleges. The additional resources are required for the following reasons: rise in enrolments, backlog of needed construction, need to expand the system (particularly for universalisation of elementary education and adult literacy), for divers{ficatio~ of the system (e.g., voca-· tionalisation), for maintenance, if not inprovement, of the quality of education, and to combat the rise in prices. Without adequate resource, the education edifice collapses. Educational system...

Microfinance (mF) in India started in the early 1980s with small efforts at forming informal self-help groups (SHG) with the main objective of providing access to savings and credit services to the rural poor, who were not allowed to borrow from main stream financial institutions. The success stories of mF are unlimited and it has been demonstrated beyond doubt that such a simple concept has the potential to transform the face of rural finance in India. Despite considerable achievements, the sustainability of the SHGs has become questionable. Competing MFIs tend to target the same set of peopl...

The authors examine the legal and business environments, financing channels, and governance mechanisms of various types of firms in India and compare them to those from other countries. Despite its English commonlaw origin, strong legal protection provided by the law, and a democratic government, corruption within India's legal system and government significantly weakens investor protection in practice. External financing of firms has been dominated by nonmarket sources of financing, while the characteristics of listed firms are similar to those from countries with weak investor protection. Th...

Colin Kirkpatrick and T.G. Arun are at the Institute for Development Policy and Management (IDPM), University of Manchester. It has long been recognized that economic growth depends on improvements in the financial system. An efficient financial system facilitates better resource mobilization and use of resources, which accelerate economic growth and thereby contribute to poverty alleviation 0 alilian and Kirkpatrick 2002; World Bank 2001 ). The empirical evidence also suggests that the impact of financial development

There has been a steep deterioration in State finances during the last decade as evidenced by sharp increases in revenue, fiscal and primary deficits, increases in their indebtedness and contingent liabilities, and decline in capital and maintenance expenditures. Low buoyancy of central transfers and spillover of central pay revisions have had the most adverse impact on State finances. However, the States’ own fiscal performance has also seen sharp deterioration. On the transfer system, the scheme proposed by the Ministry of Finance attempts to link a portion of transfers to fiscal reforms. Th...

Harvard and Princeton I remember the interest that was taken in the Indian financial system and the changes brought about in Federal and State finance-I use the American termsconsequent on the Reforms introduced by the new Constitution embodied in the Government of India Act 1919. The object of this Memorandum is to describe so that he who runs may read and reading understand the main features of this financial system as it works in this country today. Like the great and friendly Republic before the war and like the Union of South Africa, Australia, Canada, and many other countries today, Indi...

OF T'HE STUDY This is the final volume of a three-volume set exploring a range of issues relating to intergovernmental fiscal flows in India. This study attempts to evaluate the tax performance of particular states in terms of the average tax effort of all states. In addition to this aggregate measure, different taxes are examined to assess the intensity of use of various potential tax bases by the State governments, given their taxable capacity. The study covers the fifteen major states, over the period 1973-1976. Volumes I and II contain an overview of the principles of revenue sharing in In...

Micro-Finance Institutions have been playing a vital role in alleviating poverty and supporting the financially excluded group of people. However, owing to the potentialities of Micro-Finance Institutions in North East India, the present study tries to focus on the financial performance of the Micro-Finance Institutions in this region, As sound financial condition is of utmost importance for the functioning of the Micro-Finance Institutions. Seven Micro-Finance Institutions have been selected for the study. Financial ratios have been calculated for analyzing the financial performance of the Mi...

India’s financial and capital market reforms since the early 1990s have had a positive impact on both the banking sector and capital markets. Nevertheless, the capital markets remain shallow, particularly when it comes to differentiating high-quality firms from low-quality ones (and thus lowering capital costs for the former compared with the latter). While some high-quality firms (e.g., large firms) have substituted bond finance for bank loans, this has not occurred to any significant degree for many other types of firms (e.g., old, export-oriented and commercial paper-issuing ones). This ref...

With the granting of licenses to 11 payments banks and ten small banks in September 2015, the Indian banking system has seen a significant transformation in terms of reaching out to a new customer and delivery model that was previously unavailable to scheduled commercial banks. The goal of the move was to strengthen the country's financial inclusion. This article examines the importance of financial inclusion for a high-priority sector in India that is currently unbanked or under banked. It highlights the RBI's policy of promoting financial inclusion, as well as the recent licensing of Small F...

Small Finance Banks are a type of niche banks in India which can provide basic banking service of acceptance of deposits and lending. The aim behind setting up of such banks is to provide financial inclusion to sections of the society not being served by the traditional banks, such as small business units, small and marginal farmers, micro and small industries and unorganized sector. Financially excluded people not accessing the benefits provided by Indian government for their economic and social development. When the country achieves complete financial inclusion then only the country will ach...

Introduction Travel and tourism has acquired an unparalleled position worldwide. Tourism is the industry of this century. This smokeless industry’s vast capacity to support the economy, generate employment opportunities and many other unique features makes it stand out from other industries. Countries all over the world have acknowledged the importance of tourism and its scope in the development of a nation. India has yet to realise its full potential from tourism. The Travel and Tourism industry holds tremendous potential for India's economy. It can provide impetus to other industries, create...

The role of financial intermediation in promoting capital formation has been stressed in the development process of any economy. This paper examines the role of intermediaries in the Indian context with regard to the financing of the private corporate sector. It finds a strong dependence of the private corporate sector (PCS) on intermediaries in the 1980s and in the early 1990s. An increased dependence on the capital market is observed during 1993-94. The period was also marked by a reduction in their total use of funds for capital formation with a corresponding increase in finan cial assets. ...

In a country like India where 70 percent of its population lives in rural area and 60 percent depend on agriculture (according to the World Bank reports), micro-finance can play a vital role in providing financial services to the poor and low income individuals. Microfinance is the form of a broad range of financial services such as deposits, loans, payment services, money transfers, insurance, savings, micro-credit etc. to the low and poor individual income. The importance of microfinance in the developing economies like India cannot be undermined, microfinance refers to small savings, credit...

Risk pooling and prepayments are effective means to protect people from disastrous financial consequences of illness, while cross-subsidisation brings in progressivity in financial arrangements.

The role of financial intermediation in promoting capital formation has been stressed in the development process of any economy. This paper examines the role of intermediaries in the Indian context with regard to the financing of the private corporate sector. It finds a strong dependence of the private corporate sector (PCS) on intermediaries in the 1980s and in the early 1990s. An increased dependence on the capital market is observed during 1993-94. The period was also marked by a reduction in their total use of funds for capital formation with a corresponding increase in finan cial assets. ...

Issues, challenges, and solution specific to digital future in India are discussed.

MSSD Discussion Papers contain preliminary material and research results, and are circulated prior to a full peer review in order to stimulate discussion and critical comment. It is expected that most Discussion Papers will eventually be published in some other form, and that their content may also be revised. This paper is available at http://www.cgiar.org/ifpri/divs/mssd/dp.htm INNOVATIONS IN IRRIGATION FINANCING: TAPPING DOMESTIC FINANCIAL MARKETS IN INDIA

This paper extends the literature on finance and investment by examining the source of finance constraints on the firm's investment decisions. Using a panel of 714 Indian manufacturing firms for the period 1993-98, we find that the degree of 'finance constraint' differs significantly across external suppliers of funds with investments being most sensitive to borrowings from development finance institutions (DFIs) and considerably less sensitive to funds from capital markets and commercial banks. Capital markets and commercial banks seem to use outward orientation as a signal of the firm's abil...