The Fiancing of Economic Development in India (Practices, Methods, and Problems)

310 Pages·16.576 MB·English

by  Grewal, Jaswant Kaur

r
FORDHAM UNIVERSITY
GRADUATE SCHOOL
May.. 15 x 1$).. AT.
This dissertation prepared under my direction by
Jaswqnt Kaur Grrewal
entitled ..........................THE FIITANCM
(PRACTICES, METHODS, AND PROBLEMS)
has been accepted in partial fulfilment of the requirements for the
Degree o f.....................Doctor of Philosophy...................
Charles Walsh
(Faculty Adviser)
L 9-l

THE FINANCING OF ECONOMIC DEVELOPMENT IN INDIA
(PRACTICES, METHODS, AND PROBLEMS)
BY
JASWANT KAUR GREWAL
B.A., The Punjab University, 'M+
M.A., LL.B., Lucknow University, 'b6
DISSERTATION
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN THE DEPARTMENT
OF ECONOMICS AT FORDHAM UNIVERSITY
NEW YORK
1951
ProQuest Number: 10992955
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THE FINANCING OF ECONOMIC DEVELOPMENT IN INDIA
(PRACTICES, METHODS, AND PROBLEMS)
iii
r T
TABLE OF CONTENTS
Chapter Page
LIST OF TABLES........................ vi
I. INTRODUCTION ................................ 1
II. ECONOMIC BACKGROUND. ................ 8
Size and Population
Agriculture
Forestry
Fuel
Mineral Resources
Manufactures
National Income
Standard of Living
Plans for Development
III. AGRICULTURAL FINANCE IN INDIA...................36
Pattern and Methods of Agriculture
Needs of an Agriculturist for Finance
Differences between Agricultural and
Industrial Finance
The Structure of Rural and Agricultural
Credit in India
The Money-lenders
Indigenous Bankers
Co-operative Credit Societies
Land Mortgage Banks
Commercial Banks
An Appraisal of Agricultural Credit
Summary
IV. INDUSTRIAL FINANCE; SMALL-SCALE INDUSTRIES. . 81
Importance of Small-Scale Industries
Financial Needs of Small-Scale Industries
Existing Credit Facilities
The Money-Lender
The Local Dealer or Trader
The Indigenous Banker
The Joint-Stock Banks
The Managing Agents and Private Firms
The Co-operative Societies
The State
A Review of the Small-Scale Industries*
Money Market
TABLE OF CONTENTS (CONTINUED)
Chapter Page
V. INDUSTRIAL FINANCE: LARGE SCALE INDUSTRIES—
FIXED CAPITAL. . . .............. 101
The Growth of Modern Industries in India
Financial Requirements of Industries
Methods of Financing Fixed Capital
Managing Agency System
Stock Exchange
Investment Trusts
Insurance Companies
Industrial Finance Corporation
Control of Capital Issue
VI. INDUSTRIAL FINANCE: LARGE SCALE INDUSTRIES—
WORKING CAPITAL. ............. lb6
The Deposit System
The Managing Agents
Banks and Industrial Finance
The Reserve Bank of India
The Joint Stock Banks
The Imperial Bank of India
Foreign Exchange Banks
Other Scheduled and Non-scheduled Banks
Suggestions for Improvement
Conclusion
VII* FINANCING OF BASIC ECONOMIC DEVELOPMENT
PROGRAMMES AND PUBLIC FINANCE................... 1?1
Sources of Public Finance
Taxation
Public Debt
VIII. FOREIGN FINANCING— CURRENT EARNINGS AND
ACCUMULATED BALANCE.............. .199
Foreign Trade and Balance of Payment
Gold and Foreign Exchange Reserves
Foreign Exchange Reserves
Summary
FOREIGN FINANCING— FOREIGN LOANS AND INVESTMENTS. 22M-
Foreign Capital in India
India1s Attitude towards Foreign Capital
Private Foreign Investments in India
MACRO-ECONOMICS OR OVER-ALL PROBLEM OF
FINANCING................................ 260
Savings and Investment
Voluntary Savings
Ploughing Back of Private Business Profits
V
TABLE OP CONTESTS (CONTINUED)
Chapter Page
Involuntary Savings
Inflation
Budgetary Surpluses
XI* SUMMARY.......... 279
BIBLIOGRAPHY.............. 287
vi
i
LIST OF TABLES
Table Page
I. Birth Hate, Death Hate and Natural
Increase Rate per 1,000 Inhabitants in
India, 1881 to 19^1.......................... 11
II. Yield Per Acre in Tons (1939-L-O) . . ........ 13
III. Output of Selected Industries in India • • • • 26
IV. Composition of India fs Trade.......... . . . 27
V. Growth of Co-operative Societies in India. . . 59
VI. Loan Operations of Co-operative Societies
in India . . . . . . . ........ ............ 60
VII. Working Capital of Co-operative Societies
in India . . . . ........ ............ .. 61
VIII. Land Mortgage Banks in India • • • • • • • • • 66
IX. Proportionate Supply of Working Capital from
Different Financial Agencies to 6*+ Bombay
Cotton Mills and 56 Ahmedabad Cotton Mills . • 1^9
X. Consolidated Position of Scheduled Banks . . . 160
XI. Advances of 39 Indian Scheduled Banks as on
June 30, 19^8................................ 162
XII. Range of Interest Rates (Charged by 39
Scheduled Banks from different industries
as on June 30, 19^8) ......... . • 166
XIII. Budgets of the Government of India and
Provincial Governments . . . . . . . . . . . . 177
xrv. Composition of Receipts and Expenditure of
the Government of India.......... .. 180
XV. The Capital Budget of the Government of India. 182
XVI. The Government of India1s Budget Estimates and
Capital Expenditure . . l&f-
XVII. Public Debt of India................. . . . 193