INTRODUCTION *Finance is considered as the life-force of industry. Without getting adequate finance industrial development is not at all possible. Due to the lack of adequate finance, industrial development in India could not achieve a significant position and shape. Industries require both short term, medium term and long term finance for meeting their requirements of fixed capital expenditure and also to meet their working capital ietsDEFINITIO iN Describing a company or economy that engages largely or exclusively in the manufacture of products. An industrial company, for example, makes a good, which it then sells either to retailers or directly to consumers. An industrial company is characterized by having a disproportionate amount of its GDP growth in industrial companies and government agencies.SOURCES OF INDUSTRIAL FINANCE * Shares & debentures. * Public deposit be Se aes) Si R-genme-lalo ita M isl telc idols: Gel Gna Gl bebe) * Retained profitsSHARES & DEBENTURES *Indian industries are normally raising a major portion of their capital by selling shares in low denominations of Rs. 10 each Share may be a preference share or an ordinary share. Debentures are also issued in the capital market by the companies and in recent years convertible debentures are gradually becoming more popular.aes) ae DEPOSIT * Another source of industrial finance is the deposit raised from the public. Ahmedabad textile industry was primarily established on the basis of public deposit. Besides, Cotton Mills of Mumbai and Sholapur. Tea Gardens of Assam and Bengal have also raised their fixed capital in sufficient quantity through public deposit.COMMERCIAL BANKS * Commercial banks are also offering short-term loans on cash- credit basis on the security of stock and on the additional guarantee of the managing agent. The commercial banks are generally advancing loan for meeting working capital needs of the industries in the form of advancing loan, overdraft, and cash credit facilities against government securities and pledge of stocks. Commercial Banks, nowadays, have been advancing medium term loan to the industries particularly since the establishment of IDBITERM-LENDING INSTITUTIONS *In view of the inadequacy of finance from the above mentioned sources, various term lending institutions have been developed to advance loan in order to meet financial requirement of these industries. These institutions include Industrial Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India (ICICI), Industrial Development Bank of India (IDB), (IRCI), State Financial Corporations and State Industrial Development Corporations (in different states). Besides,-Life Insurance Corporation of India (LICI) and Unit Trust of India are also providing a good amount of loan to Indian industries and emerged as a most important source of industrial finance in recent years.NEED FOR INDUSTRIAL FINANCE OP sre el ate me) LUC melee tole or partners or shareholders, undertakes business in anticipation of future gain or return from it. For setting up in business the firm has to make advance expenditure before it iectesiV Ua act Lae) *The machines are to be purchased, the factory space is to be purchased or leased, raw materials are to be bought and wages and salaries arc to be paid to the employees for their services Finance is needed to undertake all such activities in business.NEED FOR INDUSTRIAL FINANCE CONTD.... SoU Manoa e le er Mee mee le ete Mel CM URI eM M del Tac te) to come back to the firm in the form of return m due coursed of time. The firm has to wait for this. Similarly, a manufactures has to produce goods be ore he can sell them He can do only when he has adequate finances for production of his goods. It is true that some industries goods are sold before they are made but even in such industries the entrepreneurs need finance to equip themselves for necessary facilities of production of the goods and services. Finance is thus a necessary precondition for business both for its initiation and smooth running