{"id":51692,"date":"2019-08-29T18:23:14","date_gmt":"2019-08-29T12:53:14","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=51692"},"modified":"2019-08-29T18:23:30","modified_gmt":"2019-08-29T12:53:30","slug":"answered-what-are-development-banks-critically-examine-the-need-of-development-banks-in-india-to-achieve-5-trillion-dollar-target","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-what-are-development-banks-critically-examine-the-need-of-development-banks-in-india-to-achieve-5-trillion-dollar-target\/","title":{"rendered":"[Answered] What are development banks? Critically examine the need of development banks in India to achieve $5 trillion dollar target."},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction.<\/strong> What are development banks?
Body. <\/strong>It\u2019s importance in achieving $5 trillion economic target.
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

Development Banks are those financial institutions that provide funds and financial assistance to new and upcoming business enterprises. Development banks like IDBI, SIDBI, and IFCI etc. were set up to meet long term and short term capital requirements of the industry. They help in accelerating industrial and economic growth.<\/p>\n\n\n\n

Development\nbanks to achieve $5 trillion economic target:<\/strong><\/p>\n\n\n\n

  1. Industrial growth: <\/strong>Without Industrial\ngrowth $5 trillion dollar target can\u2019t be achieved. It is the dynamic sector which\ncontributes to the generation of employment and income in the country. Funds\nare provided by the development banks to start a new business venture,\nexpansion and diversification of the business in new sector etc. These funds\nare needed to achieve several objectives that leads to accelerate economic\ngrowth and $5 trillion dream.<\/li>
  2. Encouraging entrepreneurs: <\/strong>Emerging\nentrepreneurs are encouraged to give shape to their ideas. Development bank\nhelps those entrepreneurs by providing funds for commencing new business. Government\nhas recognised the importance of entrepreneurs in the economic growth and thus\nproviding number of facilities and incentives to motivate them for undertaking\nindustrial projects.<\/li>
  3. Balanced regional development: <\/strong>$5\ntrillion economic target by 2022 can only we achieved if all the regions in\nIndia grow. Development bank helps in curbing regional disparities by providing\nfunds to the entrepreneurs at low rate of interest if the organisation is\nplanned in the backward areas. This is important for the development of all\nareas thereby making balanced regional development collectively moving toward\n$5 trillion goal.<\/li>
  4. Filling gaps: <\/strong>It is not possible for the\ncommercial banks to fulfill all financial needs of all the customers. Issue of\nNon-performing assets, absence of organised capital market, absence of adequate\nfacilities for financing industries arise the problem of slow development. Such\ndevelopment banks fulfill this credit gap. They provide long-term funds for\nindustries and help in growth.<\/li>
  5. Helps policies implementation:<\/strong> Government\nformulates financial policies with the help of development banks. They also\nhelp in implementing these policies. For example, NABARD bank is set up as an\napex development bank for extending support to the rural areas. Thus\ndevelopment banks are needed to fulfill government\u2019s vision.<\/li>
  6. Enhance Foreign Trade: <\/strong>Development banks help to promote foreign trade. Export-Import Bank of\nIndia (EXIM Bank) provide medium and long-term loans to exporters and importers\nfrom India. Development banks would encourage exports which are must to achieve\nthe target.<\/li><\/ol>\n\n\n\n

    Thus to achieve a $5 trillion dollar economic vision by 2022, development encouraged by development banks is needed. By providing long term loans it would help in achieving the target in desired timeline by encouraging growth.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Demand of the question Introduction. What are development banks? Body. It\u2019s importance in achieving $5 trillion economic target. Conclusion. Way forward. Development Banks are those financial institutions that provide funds and financial assistance to new and upcoming business enterprises. Development banks like IDBI, SIDBI, and IFCI etc. were set up to meet long term and… Continue reading [Answered] What are development banks? Critically examine the need of development banks in India to achieve $5 trillion dollar target.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":2292,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-51692","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/51692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=51692"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/51692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/2292"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=51692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}