Mentor’s comment-
- https://www.thehindu.com/
opinion/op-ed/despite-some- hits-the-budget-has-crucial- misses/article33721377.ece - In the intro, briefly describe the idea of DFI.
- In the body, mention the reasons for lack of funding to the infrastructure projects like long gestation period and the issue of maturity mismatch faced by the bank, low return on investment etc. In the next part, mention how the DFI would address the problem of financing for the infrastructure project. In the concerns mention the short term inflows of FPI and the exchange rate risk.
- Conclude by mentioning the need to find domestic financing mechanism instead of FPI.
Comments
5 responses to “To deal with the challenges faced in the financing, the Budget 2021-22 proposed the Development Finance Institution (DFI). How would DFI address the problem of financing? What are the concerns with allowing FPI in DFI? 10 marks”
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Hi Zulu
First define what are DFI.
You can write that these are specialized institutions set up primarily to provide development/ Project finance especially in developing countries.
Try to summarise your introduction .
Rest of the answer is well written.
Good strucutre.
Underline keywords.
order id GY9T8dRkR7Pfl
Hi Bhupender
First define what are DFI.
You can write that these are specialized institutions set up primarily to provide development/ Project finance especially in developing countries.
Avoid using unnecessary capital alphabets in between of a sentence.
In the importance, mention that it strikes a balance between commercial operational norms as followed by commercial banks on the one hand, and developmental responsibilities on the other.
Work more on presentation.
Summarise your conclusion.
Keep writing,
Hi Zulu
First define what are DFI.
You can write that these are specialized institutions set up primarily to provide development/ Project finance especially in developing countries.
Reasons are discussed in a decent manner.
In the importance mention that DFIs are not just plain lenders like commercial banks but they act as companions in the development of significant sectors of the economy.
Good conclusion.
Use subheadings.