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Volume 7 Issue 4
April 2026
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Emerging Trends in Industrial Finance in India: a Structural and Policy Analysis
| Author(s) | SHRADHA TOMAR, ANUSHKA CHAUHAN, Girja Shankar Mishra |
|---|---|
| Country | India |
| Abstract | Changes in policy and structural shifts in the market have had a profound impact on India's industrial financing industry in recent decades. This article takes a look at the current tendencies in industrial finance, which reveal that market-oriented funding options are replacing bank funding as the dominant method. Due to the rise of private sector banks, non-bank financial companies (NBFCs), venture capital and private equity funds, and other similar entities after economic liberalisation in 1991, the importance of development finance institutions (DFIs) waned. Redesigning the financial environment, the Startup India Initiative, the Insolvency and Bankruptcy Code (IBC), and the MUDRA Scheme have all worked to increase borrowing capacity, streamline processes, and encourage innovation-based development. Through assessments of SMEs and emerging industries, the study examines rates of industrial development and recovery as well as credit flow. While these innovative credit policies have significantly increased access to financing, they have also introduced new issues with non-performing assets, ineffective policy implementation, and regional disparities in credit services. To wrap off this piece, we provide some suggestions on how the policy framework might be strengthened to facilitate industrial development through various funding mechanisms. |
| Keywords | Trends, Industrial, Finance, India, Structural and Policy |
| Published In | Volume 7, Issue 4, April 2026 |
| Published On | 2026-04-28 |
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IJLRP DOI prefix is
10.70528/IJLRP
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