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India: Finance
Country Study > Chapter 6 > Character and Structure of the Economy > Finance


The early governments after independence operated with only modest budget deficits, but in the 1970s and 1980s the amount of the budget deficit as a proportion of GDP increased gradually, reaching 8.4 percent in FY 1990. Following economic reforms, the deficit declined to 6.7 percent by FY 1994. More than 80 percent of the public debt was financed from domestic sources, but the proportion of foreign debt rose steadily in the late 1980s. However, although foreign aid to India was substantial, it was much lower than most other developing countries when calculated on a per capita basis. Banking and credit were dominated by government-controlled institutions, but the importance of the private sector in financial services was increasing slowly.

Last Updated: September 1995

Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for India was first published in 1995. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on

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Section 169 of 374


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