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

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 … Continue reading 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