4 March 2025: PIB Summary For UPSC
1. NITI AAYOG LAUNCHES REPORT ON WOMEN’S ROLE IN INDIA’S FINANCIAL GROWTH STORY
(Source – https://pib.gov.in/PressReleasePage.aspx?PRID=2107708 )
| Context |
| NITI Aayog released a report titled “From Borrowers to Builders: Women’s Role in India’s Financial Growth Story.” The report was prepared by TransUnion CIBIL, the Women Entrepreneurship Platform (WEP) of NITI Aayog, and MicroSave Consulting (MSC). |
Increase in Women’s Financial Awareness
- As of December 2024, 27 million women were monitoring their credit scores, showing a 42% rise from the previous year.
- This increase reflects a growing awareness of financial management among women.
Importance of Financial Access for Women Entrepreneurs
- The government recognizes that access to finance is essential for empowering women entrepreneurs.
- WEP works to promote financial literacy, access to credit, mentorship, and market linkages for women.
- The Financing Women Collaborative (FWC) has been created to bring financial stakeholders together to support this goal.
Impact of Women’s Entrepreneurship on Economic Growth
- Encouraging women to start businesses can generate employment opportunities and boost economic growth.
- It is estimated that women’s entrepreneurship could create jobs for 150 to 170 million people.
Increase in Credit Self-Monitoring by Women
- Women’s share in the total self-monitoring base rose to 19.43% in December 2024, up from 17.89% in 2023.
- Growth in self-monitoring credit awareness was higher in non-metro regions (48%) compared to metro areas (30%).
- Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, and Telangana accounted for 49% of all self-monitoring women.
Growth in Women’s Business and Gold Loans
- Since 2019, women’s participation in business loan origination has increased by 14%.
- Women now account for 35% of business borrowers.
- Their share in gold loans has increased by 6%.
Challenges Faced by Women in Accessing Credit
- Many women hesitate to take loans due to credit aversion and negative banking experiences.
- Issues like lack of collateral, difficulty in finding guarantors, and readiness for credit remain major challenges.
Opportunity for Financial Institutions
- With rising credit awareness and better financial scores, banks and financial institutions can design gender-smart financial products.
- These products should cater to women’s unique financial needs and encourage more women to participate in the financial sector.
Conclusion
- Increasing financial awareness and access to credit are crucial for empowering women entrepreneurs in India.
- Addressing credit barriers through inclusive policies and gender-smart financial products can accelerate women’s economic participation and growth.
| Practice Question: How do financial awareness and access to credit empower women entrepreneurs in India, and what challenges do they face in obtaining credit? (150 Words /10 marks) |
Check out 3 March 2025: PIB Summary For UPSC
