Role of micro finance in Indian economy

Unemployment and poverty have been two major problems and characteristics of India since its independence. The absence of suitable funding options for the impoverished and unemployed has been the main cause of the two. Due to the economy's rapid opening, the wealth gap is growing. In addition to saving and investing, microfinance helps the poor to access loans that lead to financial independence and growth for a sustainable way of life. Between 2021 and 2025, the microfinance market in India is expected to develop at a compound annual growth rate of over 40%. The impact of the microfinance industry on the country's GDP growth is discussed in this essay. It also discusses the issues with microfinance organisations and the altered situation in the competitive market. Here, the usage of financing provided by microfinance gives women numerous opportunities to grow. The employment opportunities that the microfinance sector was providing to the Indian economyroughly 1.28 crore jobsas well as the potential for positive growth in employment and GDP contribution in the future are also covered.