Women’s Financial Empowerment Surges in India
NITI Aayog has unveiled a pivotal report titled “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story,” highlighting a significant rise in women’s engagement with credit. As of December 2024, 27 million women are actively monitoring their credit scores, reflecting a 42% increase from the previous year. This report, produced in collaboration with TransUnion CIBIL, the Women Entrepreneurship Platform (WEP), and MicroSave Consulting (MSC), underscores the growing financial awareness among women in India.
Empowering Women Entrepreneurs
During the report’s launch, NITI Aayog CEO Shri B.V.R. Subrahmanyam emphasized the importance of financial access in empowering women entrepreneurs. He stated, “The government recognizes that access to finance is a fundamental enabler for women’s entrepreneurship.” The WEP is committed to fostering an inclusive ecosystem that enhances financial literacy, credit access, mentorship, and market connections. Subrahmanyam called for a collective effort from financial institutions to design products that cater specifically to women’s needs. He announced the formation of the Financing Women Collaborative (FWC) to further this mission and urged more stakeholders in the financial sector to participate.
Impact on Employment and Economic Growth
Anna Roy, Principal Economic Advisor at NITI Aayog and Mission Director of WEP, highlighted that promoting women entrepreneurship is crucial for creating job opportunities for women entering the workforce. She noted that this strategy could potentially generate employment for 150 to 170 million individuals, thereby enhancing women’s participation in the labor market. The report indicates that women’s share of the self-monitoring credit base has risen to 19.43% in December 2024, up from 17.89% in 2023, showcasing a growing trend in financial engagement among women.
Regional Insights and Challenges
The report reveals that women from non-metro regions are increasingly self-monitoring their credit, with a 48% growth compared to 30% in metro areas. States like Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana account for nearly half of all self-monitoring women, with the southern region leading at 10.2 million. Despite these advancements, challenges remain, including credit aversion and barriers to credit readiness. Since 2019, women’s share in business loan origination has increased by 14%, and their share in gold loans has grown by 6%. However, issues related to collateral and guarantors continue to hinder progress. With rising credit awareness, financial institutions are encouraged to develop gender-smart financial products tailored to meet the unique needs of women.
Observer Voice is the one stop site for National, International news, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn