Micro Finance in India - A Key Driver for Inclusive and Sustainable Growth

Microfinance is an economic development tool whose objective is to assist the poor to work their way out of poverty. It covers a range of services which include, in addition to the provision of credit, money transfers, counseling and enables women’s empowerment by routing credit directly to women, thereby enhancing their status within their families, the community and society at large. Microfinance sector has transverse a long journey from micro savings to micro credit and then to micro enterprises and now entered the field of micro insurance micro remittance and micro pension. This gradual and evolutionary growth process has given great opportunity to the rural poor in India to attain reasonable economic, social and cultural empowerment, leading to better standard of living and sustainable growth. Microfinance has demonstrated the potential of building the social capital of the poorest communities. This paper gives the brief idea about the models used for micro financing. The study focuses on intervention of government through microfinance institutions and growth rate for sustaining in rural area as well as for overall development. Paper critically evaluates the capacity building programme for sustainable development in India.