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Financial Development and Growth in India :, A Growing Tiger in a Cage?, Hiroko Oura

This paper examines the efficiency of the different segments of India's financial system using firm-level data on corporate financing patterns. Firms are increasingly relying on external funds to finance their investment in most recent years. Empirical analyses indicate that (1) the financial system in India is not channeling funds into industries with higher external finance dependence; (2) the debt financing system does not allocate funds according to firms' external finance dependence, while equity financing system does; and (3) firms in an industry that are more dependent on external finance grow more slowly
Table Of Contents
Contents; I. Introduction; II. Are Indian Firms Increasingly Relying on External Funds?; III. Are There Signs of Financing Constraints?; IV. Does Higher External Finance Dependence Imply Weaker Firm Growth?; V. Policy Implication: Why Does India Need a Corporate Bond Market?; VI. Conclusion; Figures; 1. India: The Corporate Sector and Growth; 2. India: Sources of External Funds, Aggregate, Flow; Tables; 1. Distributions of Firms in the Study: Number of Firms; 2. Distributions of Firms in the Study: External Funds in Percent of Total Funds
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (32 p.)
Specific Material Designation
Form Of Item

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