Question

credit activities should be discouraged in unorganised sector explain ?

Answer 1

Unemployment as one of the macroeconomic problems could be reduced through the formal credit for unorganized sector participation provided it is well supported and managed. The Unorganized sector in itself may not be able to achieve much as we have presently due to inaccessibility to credit, but with the on-going policy of the Federal Government through the Reserve Bank of India on micro-financing the macroeconomic objective of reduced unemployment, if not full employment will become a reality in India. The microfinance policy has empowered much microfinance/ banking institutions to provide credit to the unorganized sector. Therefore the Government of India and all relevant stakeholders continue in their mission towards reducing unemployment while they give their whole support, in making sure that the unorganized sector continues to enjoy access to formal credit to finance its activities and accomplish its goal of unemployment reduction.