A STUDY ON THE PERFORMANCE OF MICROFINANCE INSTITUTIONS IN INDIA, FOR BALANCED ECONOMICAL GROWTH |
Author(s): |
Shamanth Kumar B U |
Keywords: |
Micro finance, Performance, rural, Institutions, World Bank, underemployment. |
Abstract |
One of the greatest challenges before the Indian sub- continent which accommodates more than one-third of the population is poverty. India, one of the BRIC nations with more than 1.2 billion population is seen by many developed countries as an emerging economy. India’s economic growth has failed to make a significant improvement in its poverty figures with 400 million- more than the total in the poorest African Nations- still stuck in poverty. Government of India with its concern started various poverty alleviation programs but they have failed to deliver the objectives to the level which is desired. The reasons may be many such as failure to reach the target group, loopholes in the system, developing a robust mechanism to name a few. Many countries including India experimented with subsidized credit which only led to increase in the NPAs. The microfinance has come forward to fill up the gap. In a country like India where 70 percent of its population lives in rural area and 60 percent depend onagriculture (according to the World Bank reports), micro-finance can play a vital role in providingfinancial services to the poor and low income individuals. Micro-finance is regarded as a useful tool forsocio-economic upliftment in a developing country like India. It is expected to play a significant role inpoverty alleviation and development. The emphasis of present paper is to study the performance and roleof microfinance institutions in the development of India. India falls under low income class according to World Bank. It is second populated country in the world and around 70 % of its population lives in rural area. 60% of people depend on agriculture, as a result there is chronic underemployment and per capita income is only $ 3262. This is not enough to provide food to more than one individual. The obvious result is abject poverty, low rate of education, low sex ratio, and exploitation. The major factor account for high incidence of rural poverty is the low asset base. |
Other Details |
Paper ID: IJSARTV Published in: Volume : 5, Issue : 9 Publication Date: 9/12/2019 |
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