Sources of Industrial Finance: Some Econometric Evidence

Section 1: Introduction . Industrialization has an important role to play in the process of economic development. The importance of industrialisation as a means for achieving rapid growth and prosperity had been recognised in the development strategy of independent India. The bold program of industrialization in India was started with the second five-year plan by realizing the need of the economy. Based on Nehru-Mahalanobis strategy, pattern of investment emphasized the reallocation of resources away from the production of consumer goods towards the production of machine tools and capital goods. By the late sixties, during the fourth five year plan (196974), policies for protecting the small-scale sector against competition from the large-scale sector were also put into practice.