Micro Finance: An Emerging Horizon of Inclusive Growth

Abstract

It is widely recognized that micro-finance is an effective tool for channeling limited resources for the benefit of the poor and hence an imperative tool for quicker inclusive growth. Often micro-finance activities have a direct bearing on empowering the women, particularly through time-tested models like viz. Self Help Group – Bank Linkage Programme (SHG-BLP). SHG-BLP has grown into world’s leading micro-finance idea within a short period of two decades. Simultaneously, the government also supports NABARD and NGOs to take up activities like group formation, micro credit and economic activities. In this context, the main objective of the paper is to highlight the meaning and importance of microfinance in India, its implications on the social sector leading to the inclusive growth. These areas under the social sector are interlinked and interconnected with each other. Improvement in one area will lead to improvement in other interlinked areas. The methodology that is being followed is primarily empirical and analytical. The study is based on secondary data collected from different sources like journals, books and from the related websites. The weaker and downtrodden sections of the society namely the women and poor generally have no access to credit and they are socially as well as economically excluded from the society. It is the concept of microfinance which has brought light into the lives of this section of the society and has been the catalyst of change. The paper highlights these issues and brings about the impact of microfinance on women, poverty and inclusive growth in India.