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About Us : Indian Economy and IFCI
Indian Economy and IFCI
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Until the establishment of ICICI in 1956 and IDBI in 1964, IFCI remained solely responsible for implementation of the government’s industrial policy initiatives. It made a significant contribution to the modernization of Indian industry, export promotion, import substitution, pollution control, energy conservation and generation through commercially viable and market- friendly initiatives. Some sectors that have directly benefited from IFCI include:
  • Agro-based industry (textiles, paper, sugar)
  • Service industry (hotels, hospitals)
  • Basic industry (iron & steel, fertilizers, basic chemicals, cement)
  • Capital & intermediate goods industry (electronics, synthetic fibres, synthetic plastics, miscellaneous chemicals) and Infrastructure (power generation, telecom services)

IFCI's ECONOMIC CONTRIBUTION
IFCI’s economic contribution can be measured from the following: -
  1. Cumulatively, IFCI has sanctioned financial assistance of Rs 838 billion to 5955 concerns and disbursed Rs 672 billion since inception.
  2. In the process, IFCI has catalysed investments worth Rs 2,526 billion in the industrial and infrastructure sectors.
  3. By way of illustration, IFCI’s assistance has been helped create production capacities of:

    6.5 million spindles in the textile industry
    7.2 million tons per annum (tpa) of sugar production
    1.7 million tpa of paper and paper products
    18.5 million tons tpa of fertilizers
    59.3 million tpa of cement
    30.2 million tpa of iron and steel
    32.8 million tpa of petroleum refining
    14,953 MW of electricity
    22,106 hotel rooms
    5,544 hospital beds
    8 port projects, 66 telecom projects and 1 bridge project.
  4. The direct employment generated as a result of its financial assistance is estimated at almost 1 million persons.
  5. IFCI has played a pivotal role in the regional dispersal of industry -- 47% of IFCI’s assistance has gone to 2,172 units located in backward areas, helping to catalyse investments worth over Rs1,206 billion.
  6. IFCI’s contribution to the Government exchequer by way of taxes paid is estimated at Rs9 billion.
  7. IFCI has played a key role in the development of cooperatives in the sugar and textile sectors, besides acting as a nodal agency in both sectors.371 cooperative societies in these sectors have been assisted by IFCI.
  8. IFCI has promoted Technical Consultancy Organizations (TCOs), primarily in less developed states to provide necessary services to the promoters of small- and medium-sized industries in collaboration with other banks and institutions.
  9. IFCI has also provided assistance to self-employed youth and women entrepreneurs under its Benevolent Reserve Fund (BRF) and the Interest Differential Fund (IDF).
  10. IFCI has founded and developed prominent institutions like:

    • Management Development Institute (MDI) for management training and development
    • ICRA for credit assessment rating
    • Tourism Finance Corporation of India (TFCI) for promotion of the hotel and tourism industry
    • Institute of Leadership Development (ILD) 
    • Rashtriya Gramin Vikas Nidhi (RGVN) for promoting, supporting and developing voluntary agencies engaged in uplifting rural and urban poor in east and northeast India.
  11. IFCI, along with other institutions, has also promoted:

    • Stock Holding Corporation of India Ltd. (SHCIL)
    • Discount and Finance House of India Ltd. (DFHI)
    • National Stock Exchange (NSE)
    • OTCEI
    • Securities Trading Corporation of India (STCI)
    • LIC Housing Finance Ltd.
    • GIC Grih Vitta Ltd., and
    • Bio-tech Consortium Ltd. (BCL).
  12. IFCI has also set up Chairs in reputed educational/ management institutions and universities.
  13. A major contribution of IFCI has been in the early assistance provided by it to some of today’s leading Indian entrepreneurs who may not have been able to start their enterprises or expand without the initial support from IFCI.
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