Which of the following specialized financial institutions in India was merged into the Small Industries Development Bank of India (SIDBI) or restructured, but historically provided long-term finance for industrial development?

💡 Solution & Explanation

The Industrial Finance Corporation of India, established in 1948, served as the premier development finance institution to provide long-term capital for industrial projects. Other institutions like NABARD focus on agriculture and rural development, while EXIM Bank handles foreign trade finance. IFCI laid the foundational framework for post-independence industrial credit. IFCI was later converted into a public limited company to adapt to financial sector reforms.