DFI to help raise cheap capital for nation building: Vinayak Chatterjee

After independence, India had an acute shortage of industrial capital and to adequately address that need the leaders of the time created three major DFIs: IDBI, IFCI and ICICI. Between the mid-1950s and the late 1980s, these three DFIs practically created a new industrial class in the country. Many of the projects and companies that you see today doing very well on the stock exchanges are products of that system. They helped create a new generation of Indian entrepreneurs when industrial capital was scarce. Today, industrial capital comes in so many ways into the industry. So, you once again have the economic history repeating itself when the nation required a DFI for raising capital for public works and infrastructure.

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