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VI. Need and impact of Human
asset and financial services on manufacturing sector in India and overall
Indian economy

 

India’s current ranking in the
world in factory output is 10. Its overall contribution to Indian GDP is 28%
and it engages nearly 17% of the total work force. The basis of any
manufacturing organization is governed by the quantity of money it is willing
to invest and the kind of people who are going to work in it. For transforming
the health of the manufacturing sector and in order to make it a most preferred
destination for domestic as well as foreign investors and industrialists, it is
very much important to promote both fund based and non-fund based financial
services. Manufacturing firms to withstand the global competition, and to
ensure their long term sustainability, have to invest in huge quantity in
setting up and developing its infrastructure, raw material, skill development
of its human resource, and R. Hence, the manufacturing houses need such
sources which should make the finance available as and when needed. Such a
continuous need of inflow of heavy finance can only be satisfied by the
financial services. The attention of the domestic as well as foreign manufacturers
can only be sought if the investment climate is made favorable. As the
investment climate is directly proportional to manufacturers’ way of thinking,
hence, this climate needs to be favorable in every aspect. The current
technological status, available mode of finance and human resource skill set
and its availability needs to be identified along highlighting the development
initiatives and future imperatives that are required to make India a
manufacturing hub and most preferred investment destination for both local and
international players.

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VII. Understanding the Financial
Services and its types

 

Financial services in layman
language, simply means the services with respect to money management provided
by various organizations that are operating in finance industry of a country.
These organizations include banks, consumer finance and insurance companies,
investment funds, stock broker firms and government sponsored firms.

 

1. Asset/Fund Based Financial
Services

 

The asset or fund based financial
services help raising the finance against the assets including both movable and
immovable, bank deposits, etc. It also includes underwriting shares,
debentures, binds, venture capital, factoring, housing finance, leasing, mutual
funds etc.

 

2. Fee Based Financial Services

 

It involves higher expertise and
less financial risk. It includes merchant banking, credit rating, capital
restricting, bank guarantee, corporate advisory services, etc.

 

 

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