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International source of finance for india as developing country

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The background of this study is to access the need of international sources of finance by India as a developing country. The major cause of underdevelopment in the developing country like India is the shortage of capital. If India depends on its own funds for funding economic development either of the two possibilities comes out. Partial development programs shall be accepted and a low rate of growth will be attained or else people will be required to forfeit to a limit beyond tolerance, which is feasible in an authoritarian state but not in a developing country like India which is a democratic state. So, there is need of international sources of financing in India which is very important for economic development (Hukku, 1989, p.12). Availing of foreign support is not a subject of shame for any country for those who are providing support today had them accepted the same earlier. Almost every developed state has had the support of foreign finance in order to enhance its own inadequate savings during the initial stage of its development. In the initial stages of development significant foreign assistance may be required but slowly foreign support as percentage of development expenses goes on retreating, since the developing nations must gain knowledge of becoming self reliant (Hukku, 1989, pp.12-13). As a developing country, India depends greatly on international sources of financing. The rates of its personal saving are good, as a minimum among the one-third of the population of the country that isn’t living in scarcity. The rapid growth of the economy of India has created much wealth for some people and that wealth is finding the places to grow. Some of it’s discovered its means out of the country, supporting the current wave of overseas acquirements. Rest of them stays home, mostly in Indian banks, accessible for collateralized use. There are various financial institutions and bodies that can fund direct investments in India and they are as follows: Overseas Private Investment Corporations, United States Trade and Development Agency, United States Agency for International Development, United Nations, Asian Development Bank, multinational financial aid organizations, bilateral financial aid organizations, local stock markets, and branch offices of foreign banks (Makar, 2010, p.205). This paper will give emphasis on the role of Foreign Direct Investment (FDI) and the World Bank in India. Aims and Objectives Aims: The aim of this paper is to explore why there is a need of international sources of finance for India as a developing country and how India use that sources for its own development. Based on background of study and