SOURCES OF FINANCE IN INDIA:
1.INTERNATIONAL FINANCE:
Raising of funds from abroad and utilization of these funds in the country for various purposes.(A).FOREIGN COLLABORATORS:
Indian companies may raise funds from abroad after getting the approval from the Government of India .Foreign collaborators subscribe in the share capital of Indian companies or they may provide drawing and design of plants ,technical knowledge ,supply of machinery and patents.(B).INTERNATIONAL FINANCIAL INSTITUTIONS:
In all over the world the world international financial institutions like International Finance Corporation (IFC) and World Bank provides long term funds for the development of Industry .These institutions provides loan only to the governments of members countries. these institutions also provides loans to the private enterprises after taking the guarantee from the relevant government. IFC also provides risk capital
(C).NON RESIDENT INDIVIDUALS:
The Indian who was born in India but live at abroad can also subscribe in the shares & debentures which are issued by the Indian companies.2. INVESTMENT FINANCE:
This is what corporate companies, trade groups, are always in need of. It is used for making investment at home or at abroad.(A): FOREIGN DIRECT INVESTMENT (FDI):
India enjoys great foreign direct investment due to the higher economic growth so, the overseas investors are more confident to invest in the Indian economy .experts says that India can attract $80 billion (FDI) in India in the next two years.· The inflow of FDI is increased up to 50% to US$ 20.76 billion during January-August 2011
· During the first 8th month of 2011 service sector including telecom, construction & power housing and real estate, attract maximum FDI. Major investors in India are Japan, Netherlands, UAE, US, UK, Singapore, and Germany.
· India foreign exchange (FOREX) reserves increased up to $858 million to $318.4 billion on 21st October.
· Foreign currency assets increased up to $861 million to $ 282.5 billion.
(B): FOREIGN INSTITUTIONAL INVESTORS (FIIs):
Foreign institutional investors are allowed to make investment in primary and secondary capital markets by means of portfolio investment scheme. They can make investment in India by purchasing shares and debentures of different companies from the Indian stock exchanges.The major industries are given in the RBI website in which FII can make investment and they are allow up to 24% of their paid up capital.
(C):GLOGAL DEPOSITORY RECEIPT:
It is a certificate which is issued to get share in foreign companies by more than one country. in world wide capital markets it can be circulated. Banks are authorized to issue GDR.In international markets India can raise equity capital by issuing GDR.GDR considered equivalent to dollars and there is no hinder for investment.The requirement for issuing GDR is that the company must consistently showing excellent performance from last 3 years.There are many advantages of issuing GDR it may be helpful for govt. to import capital goods and capital expenditures including purchase of domestic machinery and its installation and other equipment.Public finance deals with income and expenditures of various public authorities. How Government raise funds to meet the expenditure of administration and development.
REVENUES:
DIRECT TAX:A tax is said to be direct when the impact and incidents of it is on the same person on whom tax is levied, the Government of India collect 241,921crores corporate tax in 2009-2010 ,while collect 128,235 crores income tax in 2009-2010 and collect 283 crores other direct taxes in 2009-2010 and total direct taxes which are collected in 2009-2010 are RS 370,439 crores.INDIRECT TAX:
If the impact of the tax falls on one person and the incidence on another , the tax is called indirect. the Government of India collect 84,542crores custom duty in 2009-2010.while collect 101,666 crores from excise duty, and collects 55,731 crores from service tax in 2009-2010
