The independence of India created conditions for setting up of the special institutions, called Development Banks, for supply of finance for industrial development. Although special financial institutions for industrial development were in existence in other countries since the early nineteenth century, they were essentially a post-war phenomenon, especially so far as the developing countries are concerned. To begin with, the Industrial Finance Corporation of India was set up in 1948, within a year of the independence of the country. With the opening of a few more development banks in the...