What is the importance of micro finance for women? (mrd102)?
Answers
In India, the emergence of liberalization and globalization in early 1990’s aggravated the
problem of women workers in unorganized sectors from bad to worse as most of the women who
were engaged in various self employment activities have lost their livelihood. Despite in
substantial contribution of women to both household and national economy, their work is
considered just an extension of household domain and remains non-monetized. In India,
Microfinance scene is dominated by Self Help Group (SHGs) as an effective mechanism for
providing financial services to the “Unreached Poor”, and also in strengthening their collective
self help capacities leading to their empowerment. Rapid progress in SHG formation has now
turned into an empowerment movement among women across the country. Micro finance is
necessary to overcome exploitation, create confidence for economic self reliance of the rural
poor, particularly among rural women. Although no ‘magic bullet’, they are potentially a very
significant contribution to gender equality and women's empowerment. Through their
contribution to women’s ability to earn an income, these programmes have potential to initiate a
series of ‘virtuous spirals’ of economic empowerment, and wider social and political
empowerment.
The results from these self-help groups (SHGs) are promising and have become a focus of
intense examination as it is proving to be an effective method of poverty reduction and economic
empowerment. Mainly on the basis of secondary data analysis, this paper attempts to highlight
the role of Microfinance and SHGs in the empowerment of women in India.