Indian Microfinance Sector: 21-Fold Growth Over 12 Years

India’s microfinance sector has seen remarkable growth over the past 12 years, expanding from ₹17,264 crore in March 2012 to ₹3.93 lakh crore by November 2024—an increase of over 2,100%. This impressive growth underscores the sector’s crucial role in fostering financial inclusion and driving economic development across the country.

Over the past 12 years, India’s microfinance sector has experienced an extraordinary expansion, with its business increasing from ₹17,264 crore in March 2012 to ₹3.93 lakh crore by November 2024—a growth of over 2,100%. This significant rise underscores the sector’s pivotal role in promoting financial inclusion and supporting economic development across the nation.

Indian Microfinance Sector: 2,100% Growth in 12 Years: Key Highlights

Nationwide Expansion: Microfinance institutions (MFIs) now operate in 723 districts, including 111 aspirational districts across 28 states and 8 Union Territories, serving nearly 8 crore borrowers.

Economic Impact: The sector contributes 2.03% to India’s gross value added (GVA) and supports approximately 1.3 crore jobs, highlighting its substantial role in the economy.

Challenges and Recommendations: Despite this growth, MFIs face challenges such as difficulties in raising low-cost long-term funds and portfolio quality concerns. Industry representatives have called for credit guarantee schemes tailored to MFIs, creation of special funds for those operating in the North East, and relaxation of qualifying asset norms to diversify risk.

Digital Transformation: Emphasis is placed on enhancing digital infrastructure, including digital loan disbursements and repayments, to improve efficiency and reach.

The Indian microfinance sector’s evolution from a modest ₹17,264 crore in 2012 to ₹3.93 lakh crore in 2024 reflects its critical role in financial inclusion and economic empowerment. Addressing current challenges and embracing digital advancements will be essential for sustaining this growth trajectory.

China EV Export Market Share

In recent years, China's EV export market share has grown exponentially, positioning the country as the global leader in the electric vehicle (EV) industry. According to the Global EV Outlook

Reliance and Nifty50

It is crucial to have knowledge of economic subjects like Nifty50 in order to do well on SSC exams. Nifty50 is an indicator that tracks the stock market performance of the top 50 companies listed

Kallapu-Sajipa Riverfront Road Project

When it comes to building new infrastructure, Karnataka is in the forefront. There are a lot of big initiatives in the state that are boosting the economy and making things more accessible.

India's Manufacturing Vision 2025

India's manufacturing policies have recently gained significant attention as the government seeks to strengthen the country's industrial sector and achieve long-term economic growth. Th

What Drives the Gold Price Rs 1 Lakh?

Gold prices in India have surged to an all-time high, surpassing the Rs 1 Lakh mark per 10 grams for the first time. This significant rise in the Gold Price of Rs 1 Lakh is linked to various g

India’s GDP Growth Rate Falls to 6.4%

Fitch has revised its 2025 GDP forecast for India from 6.6% to 6.4%, a decrease of 10 basis points. This is the most recent global economic news. While this may not seem like a major drop, it’

Boosting Opportunities in the Gig Economy

India is witnessing a quiet revolution in how employment is created. The announcement of 12 lakh jobs in India by 2025 is a huge step toward redefining the gig and logistics economy. With

Nirmala Sitharaman Presents the 2024-25 Economic Survey – An In-Depth Analysis

The Economic Survey 2024-25 emphasizes India's consistent economic growth, forecasting a 6.4% GDP increase in FY25. Key highlights include controlled inflation, robust trade performanc

MoMSME Unveils TEAM Initiative to Enhance Digital Presence of MSMEs in India

The Ministry of Micro, Small, and Medium Enterprises (MoMSME) has introduced the MSME Trade Enablement and Marketing (TEAM) Initiative, a pioneering initiative designed to strengthen the d

Union Budget 2025: Understanding the Concept of 'Bahi Khata'

The ‘bahi khata’ is a traditional Indian ledger employed for accounting and maintaining records. It is typically a bound book, often covered in cloth, used to track financial t